China’s Central Bank Loan Operation

Date: Friday
Location: Shanghai
Source: Reuters

China’s central bank, the People’s Bank of China (PBOC), conducted a medium-term loan operation, maintaining the interest rate at 2.00%.

The PBOC issued loans worth 200 billion yuan (approximately $27.46 billion) through a one-year medium-term lending facility (MLF) to select financial institutions. This interest rate remains unchanged from previous operations.

The objective of this loan operation was to ensure that banking system liquidity remains reasonably ample, as stated by the PBOC.

The bid rates for this operation fluctuated between 1.80% and 2.20%.

In addition, a total of 995 billion yuan worth of MLF loans is set to mature this month.

Conversion Rate: $1 = 7.2825 Chinese yuan