China to conduct 500-bln-yuan MLF operation on Wednesday

BEIJING, March 24 (Xinhua) -- The People's Bank of China on Tuesday announced that it will carry out a 500-billion-yuan (about 72.52 billion U.S. dollars) one-year medium-term lending facility (MLF) operation on Wednesday, aiming to maintain adequate liquidity in the country's banking system.

The central bank said this MLF will be conducted through variable-rate tenders with a fixed quantity, using a multiple-price auction.

With a 450-billion-yuan MLF maturing this month, the move will result in a net injection of 50 billion yuan, marking the 13th consecutive month of net injection.

The MLF was introduced in 2014 to help commercial and policy banks maintain liquidity by allowing them to borrow from the central bank by using securities as collateral.