BEIJING (Reuters) – China’s central bank said on Friday it will continue to flexibly make use of a combination of tools to keep liquidity reasonably stable during the coming Lunar New Year holiday.
The People’s Bank of China will continue to use its medium-term lending facility (MLF) around the holiday that starts next week to supplement mid- and long-term liquidity, and also conduct reverse repos at appropriate times, a statement on its website said.
The central bank, in a separate statement earlier Friday, said it has released temporary liquidity worth almost 2 trillion yuan ($316.28 billion) to satisfy cash demand before the long holiday.
While liquidity always tightens at this time of year, China’s financial markets and policymakers have been more sensitive to risks of a cash squeeze since authorities began a clampdown on riskier forms of financing in early 2017.
The clampdown has led to occasional spikes in money market rates and bond yields.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.