The People's Bank of China (PBOC) has injected 2 billion yuan into the banking system through 7-day reverse repos at an interest rate of 1.80%, maintaining the rate from the previous operation. This move comes as the Chinese yuan has been experiencing significant weakening, prompting close monitoring by traders for any signs of intervention against the currency's depreciation. Despite the injection, a net of 398 billion yuan was drained from the market due to the expiration of 400 billion yuan in liquidity, indicating a tightening in monetary conditions. The yuan's weakness has been a trend since 2022, with increased selling pressure noted. Traders are now keenly awaiting China's daily yuan reference rate on Monday, looking for any efforts by the PBOC to defend the currency, especially as the onshore foreign-exchange market reopens after a long weekend. This situation arises amidst global market instability, particularly with the upcoming US elections, raising concerns over potential devaluation risks for the yuan.