Central bank conducts MLF operation

The People's Bank of China, the central bank, on Tuesday conducted a 450 billion yuan ($62.68 billion) one-year medium-term lending facility operation to maintain ample liquidity in the country's banking system. With 387 billion yuan in MLF funds maturing this month, the move has resulted in a net liquidity injection of 63 billion yuan. It is the first net injection through MLF since July 2024. The operation indicates a moderately loose monetary policy stance, said Wen Bin, chief economist at China Minsheng Bank. Since the beginning of this year, the central bank has employed various tools to inject liquidity, helping to maintain adequate liquidity and stable interest rates.

Yuan weakens against greenback

The central parity rate of the Chinese currency renminbi, or the yuan, weakened 8 pips to 7.1788 against the US dollar on Tuesday, according to the China Foreign Exchange Trade System. In China's spot foreign exchange market, the yuan is allowed to rise or fall by 2 percent from the central parity rate each trading day. The central parity rate of the yuan against the US dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day.

Xinhua - China Daily