China conducts 300-bln-yuan MLF operation to sustain banking liquidity
Wire desk byline Sourced from Xinhua, Dawn, Arab News, Anadolu and Minute Mirror. Translated and abridged by the GSRRA Desk.
China’s central bank on Tuesday conducted a 300-billion-yuan (about 41.83 billion U.S. dollars) medium-term lending facility (MLF) operation to maintain ample liquidity in the country’s banking system.
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, according to a statement on the website of the People’s Bank of China.
After the latest operation, the outstanding MLF balance stood at 4.09 trillion yuan.
Tuesday’s operation was a scaled-down rollover, as a total of 500 billion yuan of MLF will mature this month.
The central bank conducted 1.7 trillion yuan of outright reverse repos in January, which was equivalent to releasing a degree of medium-term liquidity in advance, said Wang Qing, chief macro analyst at Golden Credit Rating.
At present, medium-term liquidity in the market is kept abundant to support banks in increasing credit supply, facilitate government bond issuance, and stabilize market expectations, the analyst noted.
Reference Link:- https://english.news.cn/20250225/32bdbda493e74bdca8b13a3f88d69406/c.html
Zamir Ahmed Awan is the founder and Chair of the Global Silk Route Research Alliance, a think tank in Islamabad. He studied engineering at Shanghai University in the 1980s, and years later he went back to China as Pakistan's science counsellor in Beijing, from 2010 until 2016, working on science and higher education cooperation between the two countries.…
