The People's Bank of China (PBOC) conducted a series of reverse repurchase agreements (repos) this week, injecting and draining significant amounts of liquidity. On April 7, the PBOC sold 93.5 billion yuan of 7-day reverse repos at an interest rate of 1.5%. This operation was part of a broader strategy, as the central bank drained a net 151.7 billion yuan from the open market. The total amount due for reverse repos this week is 763.4 billion yuan, with specific due amounts for each day: 245.2 billion yuan on April 7, 64.9 billion yuan on April 8, 229.9 billion yuan on April 9, and 223.4 billion yuan on April 10. On April 8, the PBOC injected 167.4 billion yuan via 7-day reverse repos, resulting in a net injection of 102.5 billion yuan into the open market. Additionally, the Bank of Japan (BOJ) announced plans to supply US dollar funds against pooled collateral starting April 10.
BOJ to supply US dollars funds against pooled collateral from April 10
🇨🇳#PBOC conducts 167.4 billion yuan of 7-day Reverse Repo on Tuesday, injecting 102.5 billion yuan into the open market as 64.9 bln yuan due. #China #liquidity $USDCNH $SHCOMP @MKTNews24 https://t.co/dpjJtEQ9NB https://t.co/rTMPt8gcBO https://t.co/jjryfBx9gG
PBOC injects net 102.5 billion yuan in open market operations