Recently in China, open market operations designed by the Chinese Federal Reserve bank have been aiming to decrease the money supply. Since the recent Chinese policy changes, China’s benchmark rate has risen as other rates have fallen. Nearly the past two weeks have caused an extraction of almost 560 million Yuan from the market, and had temporarily increased fears of the economy, but it seems that all of the fears are tenuous and mostly baseless. With rates below 3%, direct injection has been bolstered and and foreign inflows have remained steady since January. By the government also keeping the yuan exchange rate back by injecting money, there seems to be possible problems which may ensue.