#TradeWarEases #ChainaEconomy Greetings, my dear readers, fascinated by financial intricacies! Today we will peek into China's "money kitchen," where the People's Bank of China (PBoC) is actively working on liquidity, and billions of yuan are flowing into the system to keep everything running like clockwork.
Our hero is the People's Bank of China, which on May 23 did not hold back and injected 500 billion yuan (about 70 billion US dollars) into financial institutions through a medium-term lending facility (MLF). It’s as if you were constantly pouring fuel into your car’s tank to keep the engine running smoothly. The main goal is to ensure sufficient liquidity in the banking system and, of course, to stimulate credit growth, as the economic recovery in the Middle Kingdom is ongoing but still needs gentle support. The PBoC uses a clever "multiple price bidding" system, which means there is no fixed interest rate, giving the Central Bank more flexibility. This is the third consecutive month that the PBoC has been actively "nourishing" the system, indicating its constant attention to the money supply.