BEIJING, June 6 (Xinhua) -- China's central bank on Thursday injected fresh funds through open market operations to keep liquidity stable.
People's Bank of China (File photo: VCG)
The People's Bank of China (PBOC) renewed 463 billion yuan (about 67.2 billion U.S. dollars) of medium-term lending facility (MLF) loans and injected another 37 billion yuan via the MLF into the financial system, the People's Bank of China said in a statement on its website.
The interest rate for the one-year MLF loans was 3.3 percent.
The central bank also conducted 10 billion yuan of seven-day reverse repos at an interest rate of 2.55 percent.
The move was intended to offset the impacts of maturing contracts and the issuance of government bonds.
The MLF tool was first introduced in 2014 to help commercial and policy banks maintain liquidity by allowing them to borrow from the central bank by using securities as collateral.
A reverse repo is a process by which the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future.
China will keep its prudent monetary policy "neither too tight nor too loose" while maintaining market liquidity at a reasonably ample level in 2019.