The People’s Bank of China stepped up its liquidity support on Monday, injecting 544.8 billion yuan ($75 billion) through seven-day reverse repurchase agreements while keeping the interest rate unchanged at 1.40%. The operation left a net 49 billion yuan in the banking system after offsetting maturities, reversing the previous session’s net drain of 663.3 billion yuan. The move follows smaller injections of 283.2 billion yuan and 126 billion yuan on 31 July and 1 August, respectively, suggesting officials are calibrating liquidity conditions ahead of heavy government bond issuance and tax payments in mid-August. Separately, the central bank fixed the yuan’s daily midpoint at 7.1395 per U.S. dollar, an appreciation of 101 basis points from Friday and the strongest level since 24 July. The setting was about 380 pips firmer than market estimates, underscoring policymakers’ signal of support for the currency amid persistent depreciation pressure. The firmer fix and increased liquidity come as the CFETS RMB Index, which tracks the yuan against a basket of currencies, edged up 0.18 point last week. Traders said the PBOC’s actions indicate an effort to stabilise funding costs while tempering declines in the exchange rate.