China's central bank injects 500 billion yuan via one-year loans; biggest liquidity addition in five months

On Friday, 24 July 2026, the People's Bank of China carried out a one-year medium-term lending facility (MLF) operation worth 500 billion yuan (about 73.6 billion dollars) to keep liquidity in the banking system ample. The operation, announced on 23 July, was conducted through variable-rate tenders with a fixed quantity.

With 400 billion yuan of facilities maturing this month, the move results in a net injection of 100 billion yuan and is the largest liquidity addition through this channel in five months. The injection comes ahead of the Communist Party Politburo meeting in late July and to accommodate government bond issuance, signalling continued monetary support for China's economic growth.

China is the largest buyer of Iranian oil and one of Tehran's main trade partners, so Beijing's continued monetary support for domestic demand indirectly matters for the outlook of Iran's oil exports and for global demand. On Sahmino's price board, the dollar to yuan rate has traded near 6.77 this week.