PBOC cut yuan’s fixing to weakest since Aug 2020, injects net 21 bn yuan liquidity in open market operation
PBOC cut yuan’s fixing to weakest since Aug 2020, injects net 21 bn yuan liquidity in open market operation

PBOC cut yuan’s fixing to weakest since Aug 2020, injects net 21 bn yuan liquidity in open market operation

 

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The People’s Bank of China cut the Chinese yuan’s daily fixing by 122 pips to 6.9920 per US dollar on Friday, the weakest level since August 3, 2020, compared to a fixing of 6.9798 one day earlier.

The PBOC injects 2 billion yuan liquidity to the banking system via 7-day reverse repurchase agreement (reverse repo) and another 21 billion yuan liquidity via 14-day reverse repo, at interest rates of 2% and 2.15%, respectively, unchanged from the rates in the previous operation, while 2 billion yuan reverse repo expires on the day, leaving a net 21 billion yuan injection.

For the week, the central bank injected 10 billion yuan liquidity via 7-day reverse repo and 90 billion yuan via 14-day reverse repo, while 8 billion yuan reverse repo expired, leaving a net 92 billion yuan injections.