Economy
11:05, 23-Jan-2019
China's central bank injects 257.5 billion yuan into market
["china"]
Share
Copied
China's central bank on Wednesday pumped 257.5 billion yuan(37.8 billion U.S. dollars) worth of funds into the market via targeted medium-term lending facility(TMLF) to maintain liquidity.
The TMLF tool, introduced in December 2018, is part of the broader efforts of China to strengthen financial support to private companies and small and medium-sized enterprises (SMEs).
The funds have a maximum maturity of three years and an annual interest rate of 3.15 percent, 15 basis points lower than the existing medium-term lending facility (MLF), the People's Bank of China (PBOC) said on its website.
Large commercial banks, joint-stock banks and major city commercial banks that lend heavily to the real economy and meet relative requirements can apply for the TMLF, according to the PBOC.
During the past week, the PBOC had a combined net injection of 1.16 trillion yuan via open market operations, the largest weekly amount in two years.
China will cut the reserve requirement ratio for RMB deposits by another 0.5 percentage points on Jan. 25, following a reduction of 0.5 percentage points on Jan. 15, which is expected to offset liquidity fluctuations before the Spring Festival, according to a previous announcement by the central bank.
Source(s): Xinhua News Agency