The People’s Bank of China (PBoC) has taken substantial measures to maintain adequate liquidity in the banking sector by utilising reverse repos and the medium-term lending facility (MLF). In a recent operation, the PBoC injected 235.1 billion yuan (approximately $33 billion) through seven-day reverse repos at an interest rate of 1.7 per cent.
The People’s Bank of China (PBoC) injected 235.1 billion yuan (approximately $33 billion) through seven-day reverse repos at 1.7 per cent and 200 billion yuan via the medium-term lending facility (MLF) at 2.3 per cent for one year.
This strategic move aims to ensure that liquidity in the country’s banking system remains reasonable and sufficient.
Additionally, the central bank introduced 200 billion yuan into the market via the MLF, set to mature in one year with an interest rate of 2.3 per cent.
This strategic move aims to ensure that liquidity in the banking system remains reasonable and sufficient, said Chinese media reports quoting a statement from the People’s Bank of China.
Fibre2Fashion News Desk (DP)