PBOC: Will implement new schemes to support small businesses hit by covid impact

Dhwani Mehta FXStreet

The People's Bank of China (PBOC) said that it will adopt new schemes aimed at encouraging financial institutions to lend to small businesses under pressure due to the impact of COVID-19, according to a statement posted on its website over the weekend.

Key takeaways

“Will provide capital to qualified banking institutions to spur them to extend more loans to small and micro enterprises under a scheme that will run through June 2023.”

“The measures had been announced by the State Council, or cabinet, on Dec. 15.”

Market reaction

Amid holiday-thinned light trading, USD/CNY is almost unchanged on the day, currently at 6.3521.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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