PBOC cut yuan’s fixing to weakest since Aug 2020; injects net 16 bn yuan liquidity in open market operation
PBOC cut yuan’s fixing to weakest since Aug 2020; injects net 16 bn yuan liquidity in open market operation

PBOC cut yuan’s fixing to weakest since Aug 2020; injects net 16 bn yuan liquidity in open market operation

 

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The People’s Bank of China cut the yuan’s fixing by 262 pips to 6.9798 per US dollar on Thursday, the weakest level since August 2020 and the biggest one-day cut since August 23, 2022, compared to a fixing of 6.9536 one day earlier.

The PBOC injects 2 billion yuan liquidity to the banking system via 7-day reverse repo and another 16 billion yuan via 14-day reverse repo on the day, at interest rates of 25 and 2.15%, while 2 billion yuan reverse repo expires, leaving a net 16 billion yuan injection.