PBOC Injects USD28.5 Billion Into China's Monetary System via MLF
Tang Shihua
DATE:  Nov 15 2019
/ SOURCE:  yicai
PBOC Injects USD28.5 Billion Into China's Monetary System via MLF PBOC Injects USD28.5 Billion Into China's Monetary System via MLF

(Yicai  Global) Nov. 15 -- The People's Bank of China has net injected CNY200  billion (USD28.5 billion) via its medium-term lending facility into  China's financial system today.

The liquidity in China's banking system is now "reasonably ample," the PBOC said in a statement on its website. The rate of the one-year MLFs is unchanged at 3.25 percent. The previous MLF operation was on Nov. 5. 

The central bank has not conducted reverse repos, its usual form of open market operations, for 15 days.

The PBOC also reminded the market that it conducted its second targeted reserve requirement ratio cut for qualified commercial banks today as announced early September, which should bring forth CNY40 billion in fresh liquidity. 

The central bank created MLF operations in 2014 in order to provide liquidity support to qualified commercial banks whose business focus is on economic activities in small cities and the countryside.

Editor: Emmi Laine 

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Keywords:   Open Market Operation,MLF,Reverse Repo,PBOC,Cash Injection