Money Market

A money market generally refers to a market for short-term financing of less than one year and consists of interbank lending market, repo, short-term bond market, market of jumbo certificates of deposits, commercial paper market, and other submarkets. Money market, an important venue for financial institutions to adjust positions and the platform on which the central bank conducts monetary policy, plays an important role in the healthy development of the economy and the normal operation of the financial system. In 1998, amid the continued spread of financial crisis in Asia and persistent fluctuations of the international financial market, the stable operation of China’s money market played a positive role in managing financial risks and safeguarding the smooth implementation of monetary policy and fiscal policy.