China's central bank injects liquidity into market in February

Updated 2018-03-02 11:11:03 Xinhua

China's central bank injected 571.4 billion yuan (about 90.13 billion U.S. dollars) into the market via various tools in February to maintain liquidity.

The People's Bank of China (PBOC) said 393 billion yuan was added via the medium-term lending facility (MLF) to keep interbank liquidity stable.

The funds will mature in one year at an interest rate of 3.25 percent. The injection brought total outstanding MLF loans to 4.78 trillion yuan at the end of February.

The MLF tool was introduced in 2014 to help commercial and policy banks maintain liquidity by allowing them to borrow from the central bank using securities as collateral.

The central bank increasingly relies on open-market operations, rather than changes in interest rates or reserve requirement ratios, to manage liquidity in a more flexible and targeted manner.

In February, the PBOC also injected 151 billion yuan of funds through pledged supplementary lending (PSL) to China Development Bank, Export-Import Bank of China, and Agricultural Development Bank of China.

Last month, the central bank also granted 27.38 billion yuan to financial institutions through the standing lending facility (SLF) tool to meet provisional liquidity demand.

The PBOC open market operations are closely watched by the market, as they have become major tools for the central bank in pursuing its monetary policy.

China has decided to maintain a prudent and neutral monetary policy in 2018 as it strives to balance growth and risk prevention.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58October 22 2018 17:28:40

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16October 22 2018 17:28:40

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18October 22 2018 17:28:40

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

China World Business Sports Showbiz Audio
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
China World Fun Travel Entertainment Sports
Beijing Shanghai Guangzhou
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords