Exchange rate data from the People's Bank of China or major financial news outlets

PBOC Activates Monthly Reverse Repo Operations, Injects 241.6 Billion Yuan at 1.50%, Sets Yuan Rate at 7.1307 per USD

Oct 28, 2024, 12:35 AM

The People's Bank of China (PBOC) has announced the activation of an outright open market reverse repo operations facility aimed at ensuring sufficient liquidity in the banking system. This new monetary policy tool will involve monthly transactions primarily with primary dealers, covering tenors including three-month and six-month periods. The PBOC's initiative is effective immediately, with the first operation set to take place on Monday. In a related move, the central bank has also set the yuan's central parity rate at 7.1307 per USD, marking the weakest level since August 21, and injected 241.6 billion yuan through 7-day reverse repos at an interest rate of 1.50%. These actions reflect the PBOC's efforts to enhance liquidity adjustments in the coming year.