China's central bank injects liquidity into market in November-Xinhua

China's central bank injects liquidity into market in November

Source: Xinhua

Editor: huaxia

2022-12-01 17:43:15

BEIJING, Dec. 1 (Xinhua) -- China's central bank in November pumped cash into the money market to meet the liquidity demand of financial institutions.

A total of 850 billion yuan (about 119.3 billion U.S. dollars) was injected into the market via the medium-term lending facility (MLF) last month to maintain liquidity at a reasonably sufficient level in the banking system, according to the People's Bank of China.

The funds will mature in one year at an interest rate of 2.75 percent.

Total outstanding MLF loans hit 4.4 trillion yuan at the end of November.

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.

Another 640 million yuan was lent to financial institutions through the standing lending facility to meet provisional liquidity demand.