China Boosts Liquidity with Reverse Repos, Eases MLF Dependence

China injects funds via reverse repos to enhance liquidity, reducing reliance on Medium-term Lending Facility (MLF). Discover the strategic shift in monetary tools.

A vibrant illustration of Chinese yuan notes and financial graphs, symbolizing liquidity injection a
China Boosts Liquidity with Reverse Repos, Eases MLF Dependence

China has injected funds through outright reverse repurchase agreements, aligning with a strategy to reduce reliance on MLF.

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