China’s Central Bank Injects 900 Billion Yuan to Sustain Liquidity

Beijing, The Gulf Observer: The People’s Bank of China (PBOC) conducted a 900-billion-yuan (approximately 125.14 billion U.S. dollars) medium-term lending facility (MLF) operation on Monday to ensure adequate liquidity in the banking system.

The funds, issued with a one-year maturity, carried an interest rate of 2 percent, consistent with the rate from the previous month’s operation.

Following this latest liquidity injection, the outstanding balance of the MLF reached 6.239 trillion yuan, reflecting the central bank’s commitment to maintaining reasonable financial conditions amidst evolving economic dynamics.

The MLF is a key monetary policy tool used by the PBOC to provide long-term funding to financial institutions, supporting the broader objective of fostering economic stability and growth.