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China's central bank injects $84.4 bn via 1-yr MLF to boost liquidity

26 Sep '25
1 min read
China's central bank injects $84.4 bn via 1-yr MLF to boost liquidity
Pic: humphery / Shutterstock.com

Insights

  • The People's Bank of China (PBOC) has injected 600 billion yuan (~$84.4 billion) through a one-year medium-term lending facility (MLF) to maintain ample liquidity, matching last month's net injection.
  • The MLF, introduced in 2014, allows banks to borrow against securities.
  • PBOC launched 14-day reverse repo operations via interest-rate bidding to address varied funding needs more effectively.
The People’s Bank of China (PBOC) has carried out a one-year medium-term lending facility (MLF) operation worth 600 billion yuan (~$84.4 billion) to ensure sufficient liquidity in the banking system.

The operation, conducted through fixed-quantity and multiple-price bidding, matches last month’s net injection, according to Chinese media reports.

The MLF, introduced in 2014, enables commercial and policy banks to borrow from the central bank using securities as collateral.

The 14-day reverse repo operations were launched via interest-rate bidding, with successful bids determined at multiple price levels.

ALCHEMPro News Desk (SG)

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