Global EditionASIA 中文双语Français
Business
Home / Business / Finance

China's central bank drains liquidity from market Tuesday

Xinhua | Updated: 2019-11-05 11:59
Headquarters of the People's Bank of China, the central bank, is pictured in Beijing, Oct 8, 2018. [Photo/IC]

BEIJING - China's central bank drained 3.5 billion yuan ($497 million) from the market Tuesday, with more medium-term lending facility (MLF) maturing than conducted.

The People's Bank of China (PBOC) injected a total of 400 billion yuan into the market via one-year MLF at the interest rate of 3.25 percent, 5 basis points lower than the previous MLF, the PBOC said on its website.

With a total of 403.5 billion yuan of MLF maturing Tuesday, this led to a net withdrawal of 3.5 billion yuan from the market.

Meanwhile, the PBOC skipped reverse repo operations on Tuesday.

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.

China vowed to keep its prudent monetary policy "neither too tight nor too loose" while maintaining market liquidity at a reasonably ample level in 2019.

Top
BACK TO THE TOP
English
Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263

Registration Number: 130349
FOLLOW US