PBoC Injects Short- and Medium-Term Funds Into Banks

The People’s Bank of China (PBoC) said it will conduct overnight reverse repo operations from August 27 to Sept. 1 to meet short-term liquidity needs. The operations will be carried out at a fixed rate via quantity-based bidding, with a daily cap of CNY 600 billion. In addition, the central bank announced a CNY 500 billion one-year medium-term lending facility (MLF) on Tuesday, August 25, conducted through variable-rate tenders with a fixed quantity using a multiple-price auction.

The People’s Bank of China (PBoC) said Thursday, August 13, it conducted zero seven-day reverse repos for a third straight day, citing demand from primary dealers. Separately, the central bank announced it will carry out up to CNY 600 billion of overnight reverse repos per day on August 14 and August 17–19. The PBoC uses these short-term liquidity tools to “fine-tune cash conditions” in the banking system, balancing market demand with stability in funding.

The People’s Bank of China (PBoC) conducted zero seven-day reverse repos in open market operations on Tuesday, according to an online statement, marking the first time since June that it injected no liquidity through the short-term tool. The move was made in response to demand from primary dealers and came as the central bank continued to use reverse repos flexibly to fine-tune liquidity conditions in the banking system. The absence of an injection suggests the central bank saw limited need to provide additional short-term funds, while allowing existing liquidity conditions to guide operations.