PBOC drains net 7 bn yuan liquidity, cut yuan’s fixing by 21 pips

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The People’s Bank of China injects 5 billion yuan liquidity to the banking system via 7-day reverse repurchase agreement (reverse repo) on Monday, at a rate of 2.1%, in line with the rate in the previous operation. Meanwhile, 12 billion yuan reverse repo expires on the day, leaving a net 7 billion yuan liquidity drained from the market.

The PBOC cut the Chinese Yuan’s fixing by 21 pips to 6.7543 per US dollar on Monday, compared to a fixing of 6.7522 one day earlier.