In November, the People's Bank of China implemented significant injections of funds into the national financial system, totaling 1 trillion yuan ($138 billion). This operation was carried out through the use of new monetary policy mechanisms. Among the key measures is a program to buy back government treasury bonds, the volume of which reached 200 billion yuan last month. Having started using this tool in August, the NBK seeks to strengthen control over the level of government debt profitability. Over the past three months, the volume of repurchases has been stable at around 200 billion yuan, but the Chinese regulator plans to gradually increase them in the future. In November, the Chinese Central Bank also sent 800 billion yuan to the banking sector through the use of a monthly reverse repo mechanism aimed at primary dealers, which was put into effect a month earlier. The amount of funds provided through this tool increased by 300 billion compared to October, when it amounted to 500 billion yuan. Thus, the NBK significantly expands the tools of monetary policy, which makes it possible to maintain the stability of financial markets and stimulate economic growth in conditions of continuing risks and uncertainty.
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