FX.co ★ PBoC Maintains Liquidity Support Before Month-End

On Wednesday, July 29, 2026, the People’s Bank of China (PBoC) injected CNY 806.5 billion into the banking system via reverse repo operations to keep liquidity ample at month-end. The central bank provided CNY 206.5 billion through seven-day reverse repos at an unchanged interest rate of 1.40%, and supplied an additional CNY 600 billion via overnight reverse repos, without disclosing the associated borrowing cost.

This move came after the PBoC announced last week that it would carry out overnight reverse repo operations from July 29 to 31 and again on August 3, injecting a total of CNY 2.1 trillion through this short-term liquidity facility. These actions underscore the central bank’s ongoing effort to stabilize money market conditions and ensure sufficient cash in the banking system during a period that typically sees heightened funding demand at the end of the month.