(Xinhua) – Beijing (Xinhua) –China’s central bank announced on Monday that it pushed cash into the money market in January to fulfil financial firms’ liquidity needs.
According to the People’s Bank of China, a total of 700 billion yuan (approximately 110 billion US dollars) was pumped into the market last month via the medium-term lending facility (MLF) to keep liquidity in the banking system at a reasonable level (PBOC).
The funds will mature in one year at a 2.85 percent interest rate. As of the end of January, the total outstanding MLF loans were 4.75 trillion yuan. The MLF instrument was created in 2014 to assist commercial and policy banks in maintaining liquidity by allowing them to borrow from the central bank using assets as collateral.
According to the PBOC, another 2.35 billion yuan was given to financial institutions in January under the standing lending facility to cover their interim liquidity requirements.
