On February 5, 2025, the People's Bank of China (PBOC) conducted a significant reverse repo operation, injecting 697 billion yuan (approximately $97.2 billion) into the banking system through seven-day reverse repos. This action was taken to mitigate the effects of concentrated maturities of reverse repos in the open market and to maintain adequate liquidity levels. The PBOC also fixed the USD/CNY reference rate at 7.1691, marking the strongest level since November 8, 2024. In subsequent operations, the PBOC injected an additional 275.5 billion yuan at a rate of 1.5% and removed 204.5 billion yuan through open market operations. As of February 7, the PBOC set the USD/CNY reference rate at 7.1699, with a net drain of 100.3 billion yuan in open market operations, reflecting ongoing adjustments to manage liquidity effectively. Meanwhile, the Federal Reserve's Reverse Repo Facility balance has declined to $85 billion, its lowest level in over three years, indicating a potential liquidity drain in the U.S. financial system.