FX.co ★ PBoC Injects Short- and Medium-Term Funds Into Banks

The People’s Bank of China (PBoC) announced it will conduct overnight reverse repo operations from August 27 to September 1 to meet short-term liquidity demand. These operations will be executed at a fixed interest rate through quantity-based bidding, with a daily ceiling of CNY 600 billion. In addition, on Tuesday, August 25, the central bank launched a CNY 500 billion, one-year Medium-term Lending Facility (MLF), carried out via variable-rate tenders with a fixed total amount, using a multiple-price auction mechanism.