BEIJING, Jan 2 (Reuters): China's central bank injected a net 212.36 billion yuan ($32.7 billion) into the financial system via short- and medium-term liquidity tools in December, rising sharply from November as it sought to ease tight cash conditions before the year-end.
In November, the People's Bank of China (BoC) only injected 4.74 billion yuan of funds into the financial system, amid a sustained crackdown on riskier lending to reduce financial risks.
On Dec. 14, the PBOC nudged money market interest rates upward just hours after the Federal Reserve raised the US benchmark, as Beijing sought to prevent destabilising capital outflows without hurting economic growth.
The PBOC said in a statement published on Tuesday that it lent 476 billion yuan to financial institutions via its medium-term lending facility (MLF) in December. Outstanding MLF was 4.5215 trillion yuan at the end of December compared with 4.4205 trillion yuan at the end of November, implying a net injection of 101 billion yuan last month.
The PBOC also extended 134.06 billion yuan of loans to local financial institutions in December via its standing lending facility (SLF), it said.
BoC injects more funds into Dec via liquidity tools
FE Team | Published: January 03, 2018 00:19:11
BoC injects more funds into Dec via liquidity tools
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