The PBOC injected 10 billion yuan ($1.53 billion) of short term loans into the financial system on Friday to maintain liquidity, following its announcement on Thursday that it will conduct open-market operations on a daily basis.
In recent weeks, central bank officials have signaled a reluctance to rely on broad-based easing tools like cuts to bank reserve requirement ratios to support the economy, measures that could weaken the yuan and increase capital outflows.
It also lowered offered rates for the MLF loans to 2.85 percent for six-month loans and 3 percent for one-year loans, the bank said.
On Friday, the People's Bank of China (PBOC) set the midpoint rate at 6.5186 per dollar prior to market open, only 0.05 per cent weaker than the previous fix of 6.5152.
The yuan has fallen about 5 percent against the USA dollar since early August, when the central bank allowed a 2-percent depreciation.
The Institute for International Finance has estimated that China's central bank likely spent about US$90bil worth of reserves in currency interventions in January, leading to monthly net capital outflows of about US$113bil.
"The market has started to grasp the guidance from the central bank, which is now more based on yuan's value against a basket of currencies", said a dealer at a Chinese commercial bank in Shanghai.