Chinese onshore markets will remain closed for a week long holiday from October 1st to 7th for the National Day holiday. It is normal practice for the People’s Bank of China (PBoC) to increase cash injection ahead of a major holiday in the effort of easing the liquidity shortage.

However, this week the People’s Bank of China (PBOC) drained a net 420.1 billion yuan ($62.99 billion) from the market through open market operations this week, compared with a net injection of 670 billion yuan a week earlier. That was the most on a weekly basis in nearly three months, despite expected strong cash demand ahead of the week-long national day holiday.

The PBoC’s intention could be either to stabilize onshore Yuan rates by increasing the borrowing cost, ahead of its official entry to the SDR basket or continue on its tweaked short-term credit strategy, amid the increasing risk of price bubbles in Chinese financial markets.

China’s primary money rates were up sharply on the week on Friday due to a cash crunch mid-week after a large central bank-led net drain from the financial system, but liquidity conditions had eased up on the day, traders said. Benchmark seven-day repo traded in the interbank market was 2.5717 percent Friday, a sizable 24.16 basis points above the previous week’s closing average rate, but 17.42 basis points lower from a day earlier.

The PBoC through has announced that “On October 1st 2016, the RMB will officially join the International Monetary Fund (IMF) Special drawing rights (SDR) currency basket. It said that an increasing demand for RMB bond assets from international institutional investors, and the corresponding capital inflows will contribute to the stability of RMB exchange rate.