How the Central Bank in China pumps money to spray the economy

26 August 20204 years ago babelfish

The Chinese central bank still intervenes in the market by injecting 200 billion yuan (24.5 billion euros) of liquidity into the financial system. All the details

Financial institutions are implementing a series of measures to support the economy during the coronavirus pandemic with cheaper loans, lower lending rates, and cutting bank reserve ratios.

HERE IS THE LAST MOVE OF THE CHINESE CENTRAL BANK

The Chinese central bank still intervenes in the market by injecting 200 billion yuan (24.5 billion euros) of liquidity into the financial system through its reverse repurchase agreements in an attempt to maintain adequate funds.

THE RATE

The 14-day reverse repo rate remained at 2.2%, unchanged from previous operations, the People's Bank of China explained on its website.

THE PREVIOUS

Last week, PBOC injected 700 billion yuan through its one-year medium-term loan facility to secure ample liquidity in the banking system.

WHAT HAS THE CHINESE CENTRAL BANK DECIDED

The People's Bank of China effectively injected 700 billion yuan ($ 101 billion) of medium-term loans for one year last week and kept the cost of borrowing at 2.95% for the fourth consecutive month, according to a statement. published on the website.

THE COMMUNICATION OF THE CENTRAL INSTITUTE OF CHINA

The central bank last cut the rate in April, when it lowered the one-year mid-term lending rate from 3.15% to 95%. "The MLF operation is a one-off continuation of two batches of MLF loans due to expire this month, which fully satisfies market demand," the PBOC said in the statement. The two batches of MLF loans that expire in August are worth a total of 550 billion yuan.

This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/mondo/come-la-banca-centrale-in-cina-pompa-denaro-per-irrorare-leconomia/ on Wed, 26 Aug 2020 13:40:41 +0000.