FX.co ★ China Injects Liquidity via Reverse Repo, Rate Unchanged at 1.4%

On September 18, the People's Bank of China (PBOC) executed seven-day reverse repurchase agreements totaling CNY 487 billion (approximately USD 68.56 billion) through its open market operations, maintaining a steady interest rate of 1.4%. This rate remains constant from the preceding period. Concurrently, with CNY 292 billion worth of seven-day reverse repos maturing that same day, the central bank facilitated a net injection of CNY 195 billion, reinforcing its strategy to infuse liquidity into the banking system. This action occurred shortly after the US Federal Reserve opted to reduce interest rates by 25 basis points. The seven-day reverse repo rate has now become the primary policy rate governing the economy. The last adjustment to this rate by the PBOC, a decrease of 10 basis points, took place in May.