Beijing: China’s central bank announced Wednesday that it will cut the reserve requirement ratio (RRR) by 0.5 percentage points for financial institutions starting May 15.

According to Qatar News Agency, financial institutions that have already implemented a 5-percent RRR will be exempt from the upcoming reduction. Additionally, the RRR for auto financing and financial leasing companies will be reduced by 5 percentage points, as stated by the central bank.

The move is anticipated to inject approximately 1 trillion yuan (about 138.9 billion) in long-term liquidity into the economy. This was announced by the governor of the People’s Bank of China, Pan Gongsheng.