Ella 
China has opted to withdraw cash from its banking system for the second consecutive month, indicating a cautious approach toward monetary easing amidst growing concerns over currency depreciation.
The People’s Bank of China (PBOC) executed a net withdrawal of 70 billion yuan ($9.7 billion) through its medium-term lending facility (MLF), maintaining the interest rate on its one-year policy loans at 2.5%. This move comes despite stagnant inflation levels last month, prompting calls for increased stimulus measures. Notably, officials had already reduced liquidity in March via the MLF, marking the first such reduction since late 2022.
The decision underscores China’s efforts to manage liquidity and stabilize its currency amid external pressures and economic uncertainties. As the global economic landscape continues to evolve, observers will closely monitor China’s monetary policy decisions for their potential impact on domestic and international markets.
