The People's Bank of China (central) today made a new injection of liquidity of 403,000 million yuan (58,300 million dollars, 51,300 million euros) in the country's financial system through medium-term loans (MLF, acronym in English ).
The funds issued have a one-year maturity at an interest rate of 3.3 percent, the same as the last issuance of these instruments, according to a central bank statement quoted by the official Xinhua news agency.
The MLF tool was introduced in 2014 to help banks maintain liquidity by allowing them to borrow from the central bank using securities as collateral.
This injection of liquidity is added to others made in the last two weeks through reverse repurchase agreements (also known as "repos"), an instrument through which securities are sold conditioned on an agreement to repurchase them at a later date.
These operations exceeded 390,000 million yuan (56,500 million dollars, 49,600 million euros) and were aimed at controlling debt levels and strengthening national financial stability.
In addition, the People's Bank of China today maintained the suspension of "repos" operations for the seventh consecutive working day.
The intervention of the Chinese central bank is aimed at controlling the money supply and easing liquidity tensions to keep it at a reasonable and broad level, Xinhua said.