Central bank starts 4.8 bln USD repurchase operation

 　　BEIJING, Feb. 19 (Xinhua) -- The People's Bank of China (PBOC) on Tuesday started a 28-day repurchase operation worth 30 billion yuan (4.8 billion U.S. dollars) for the first time since June, according to a statement on its website.

　　A repurchase operation is a central bank operation to withdraw funds in the open market to prevent rampant¹ liquidity².

　　Chinese stocks dived on Tuesday, with the benchmark Shanghai Composite Index plunging³ 1.6 percent on the heels of the central bank's move.

　　The PBOC started the repurchase operation shortly after the seven-day Spring Festival holiday, in a bid to address the potential for excessive liquidity and a rapid increase in foreign exchange among financial institutions, analysts⁴ said.

　　Zhou Jingtong, a PBOC researcher, said the surge in China's exports is likely to greatly increase the funds outstanding for foreign exchange, calling for the PBOC's repurchase operation.

　　The country's exports surged 25 percent year on year in January, marking the fastest pace since April 2011 and up from the 14.1 percent rise in December 2012.

　　Meanwhile, the PBOC also suspended the offering of reverse repurchase (repo) agreements for the first time in the past eight months.

　　The PBOC provided a huge reverse repo worth a total of 860 billion yuan in the week ahead of the Chinese Lunar New Year, which fell on Feb. 10 this year. It recorded a record-high fund injection in a single week, which guaranteed liquidity during the holiday in case money market rates skyrocketed on rising cash demand.

　　Analysts also said the repurchase operation is not a signal that the central government is changing the monetary⁵ policy, as this would require more observation.

　　Lu Zhengwei, chief economist⁶ with Industrial Bank, also said he believes the operation is an annual routine around the Spring Festival and does not signal a tightening⁷ monetary policy.

1 rampant   

adj.(植物)蔓生的；狂暴的，无约束的

参考例句：

• Sickness was rampant in the area.该地区疾病蔓延。
• You cannot allow children to rampant through the museum.你不能任由小孩子在博物馆里乱跑。

2 liquidity   

n.流动性，偿债能力，流动资产

参考例句：

• The bank has progressively increased its liquidity.银行逐渐地增加其流动资产。
• The demand for and the supply of credit is closely linked to changes in liquidity.信用的供求和流动资金的变化有密切关系。

3 plunging   

adj.跳进的，突进的v.颠簸( plunge的现在分词 )；暴跌；骤降；突降

参考例句：

• War broke out again, plunging the people into misery and suffering. 战祸复发，生灵涂炭。 来自《现代汉英综合大词典》
• He is plunging into an abyss of despair. 他陷入了绝望的深渊。 来自《简明英汉词典》

4 analysts   

分析家，化验员( analyst的名词复数 )

参考例句：

• City analysts forecast huge profits this year. 伦敦金融分析家预测今年的利润非常丰厚。
• I was impressed by the high calibre of the researchers and analysts. 研究人员和分析人员的高素质给我留下了深刻印象。

5 monetary   

adj.货币的，钱的；通货的；金融的；财政的

参考例句：

• The monetary system of some countries used to be based on gold.过去有些国家的货币制度是金本位制的。
• Education in the wilderness is not a matter of monetary means.荒凉地区的教育不是钱财问题。

6 economist   

n.经济学家，经济专家，节俭的人

参考例句：

• He cast a professional economist's eyes on the problem.他以经济学行家的眼光审视这个问题。
• He's an economist who thinks he knows all the answers.他是个经济学家，自以为什么都懂。

7 tightening   

上紧，固定，紧密

参考例句：

• Make sure the washer is firmly seated before tightening the pipe. 旋紧水管之前，检查一下洗衣机是否已牢牢地固定在底座上了。
• It needs tightening up a little. 它还需要再收紧些。