PBOC Injects Up to 616B Yuan via 7-Day Reverse Repos at 1.40%, Plans Yuan Bond Issuance in Hong Kong

The People's Bank of China (PBOC) has conducted multiple liquidity injections through 7-day reverse repos at a steady interest rate of 1.40% over several days in August 2025. On August 18, the PBOC injected 266.5 billion yuan, with a net liquidity injection of 154.5 billion yuan through open market operations (OMO). The following day, August 19, the central bank increased the injection to 580.3 billion yuan via 7-day reverse repos, accompanied by a net liquidity injection of 465.7 billion yuan. On August 20, the PBOC further raised the injection amount to 616 billion yuan, maintaining the 1.40% rate, and injected a net 497.5 billion yuan through OMO. On August 21, the injection amount decreased to 253 billion yuan, with a net liquidity injection of 124.3 billion yuan. Additionally, the PBOC announced plans to issue yuan-denominated bills in Hong Kong, including 30 billion yuan in three-month bills and 15 billion yuan in one-year bills, in coordination with the Hong Kong Monetary Authority (HKMA). The USDCNY reference rate fluctuated slightly during this period, with fixes ranging from 7.1322 to 7.1359.