Beijing: China’s central bank on Monday conducted a 900-billion-yuan (about US$125.14 billion) medium-term lending facility (MLF) operation to maintain reasonable and ample liquidity in the country’s banking system.
According to Emirates News Agency, the MLF operation features a one-year maturity period and an interest rate of 2 percent, unchanged from the rate of the previous operation conducted last month. Xinhua News Agency quoted a statement from the People’s Bank of China regarding the details of this financial maneuver.
Following the latest operation, the outstanding MLF balance stood at 6.239 trillion yuan. This move comes as part of a strategic effort to manage the liquidity levels in the banking sector, with approximately 1.45 trillion yuan of MLF funds set to mature this month. In a related development, the central bank conducted 500 billion yuan of outright reverse repos in October, essentially preemptively releasing a portion of medium-term liquidity.
