FX.co ★ PBoC Skips Reverse Repos for First Time Since August 2024

The People’s Bank of China (PBoC) announced on Wednesday that it carried out no reverse repo operations in its open market activities, citing the funding needs of primary dealers. According to Reuters calculations, this is the first time since August 2024 that the central bank has refrained from injecting liquidity via reverse repos. The lack of such operations indicates that the PBoC considers liquidity conditions in the banking system to be sufficient, reducing the necessity for short-term cash injections.