China central bank lends bln via MLF in April

Updated 2018-05-03 09:43:19 Xinhua

China's central bank continued to pump cash into the money market in April to maintain liquidity at a reasonable level.

The People's Bank of China (PBOC) said Wednesday in an online statement that 367.5 billion yuan (nearly 58 billion U.S. dollars) was added via the medium-term lending facility (MLF) last month, down from a 432.5-billion-yuan injection in March.

The funds will mature in one year at an interest rate of 3.3 percent, up from 3.25 percent in March.

Total outstanding MLF loans dropped to slightly more than 4 trillion yuan at the end of April, down from 4.91 trillion yuan a month ago, as the PBOC reduced required deposit reserves for some banks to help them pay back the MLF loans due on April 25.

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 has adopted such open-market operations more frequently to manage liquidity in a more flexible and targeted manner.

In April, the PBOC also injected 53.2 billion yuan of funds through pledged supplementary lending to China Development Bank, the Export-Import Bank of China, and the Agricultural Development Bank of China.

Another 46.7 billion yuan was lent to financial institutions through the standing lending facility to meet provisional liquidity demand.

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 maintained 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 24 2018 00:17:27

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 24 2018 00:17:27

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18October 24 2018 00:17:27

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.

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