FX.co ★ PBoC Injects CNY 300 Billion into Banking System

The People's Bank of China (PBoC) has implemented a CNY 300 billion infusion into financial institutions via a one-year medium-term lending facility (MLF) as of June 25th, ensuring sufficient liquidity within the nation's banking framework. The MLF operation was executed through a fixed-quantity, interest-rate bidding, and multiple-price bidding method. Notably, this month’s net MLF injection is lower compared to the CNY 500 billion observed in the prior month. With CNY 182 billion in MLF funds due to mature this month, this action effectively translates to a net liquidity injection of CNY 118 billion, signifying the fourth consecutive month of increasing MLF activities. From March, the central bank introduced a multiple-price bidding approach for MLF operations, consequently discontinuing the announcement of a fixed interest rate for the facility.