BEIJING, Aug. 30 (Xinhua) -- China's central bank announced on Friday that it conducted open market government bond transactions in August, resulting in a net purchase of bonds with a face value of 100 billion yuan (about 14 billion U.S. dollars).
Analysts interpret the net bond purchase by the People's Bank of China (PBOC) as a clear signal of its intensified monetary policy efforts to support stable economic growth and expand domestic demand.
The PBOC has reiterated that incorporating government bond transactions into its monetary policy toolkit does not signal a shift toward quantitative easing.
It said that China's current monetary policy retains ample flexibility, supported by a healthy and sustainable fiscal position, making quantitative easing unnecessary.
The bank stated that the inclusion of government bond operations is intended to serve as a channel for base currency issuance and a tool for liquidity management. This approach is designed to work in conjunction with other instruments to create a conducive liquidity environment. ■
