The People’s Bank of China injected 580.3 billion yuan ($80 billion) into the financial system on 19 August through seven-day reverse repurchase agreements, maintaining the policy rate at 1.40%. The operation resulted in a net liquidity addition of 465.7 billion yuan after offsetting maturities. At the same time, the central bank fixed the yuan’s daily reference rate at 7.1359 per U.S. dollar, roughly 500 pips stronger than market estimates, marking the second consecutive day it set the midpoint firmer than expected. The latest move follows a 266.5 billion-yuan injection on 18 August, which left a net 154.5 billion yuan in the market, and a fixing of the midpoint at 7.1322. The consecutive liquidity additions and stronger fixings have stirred debate among analysts over whether Beijing is preparing to allow the currency to appreciate, with some economists predicting the yuan could strengthen past 7 per dollar if capital inflows persist.