PBoC sells 182.7 bln yuan of 7-day reverse repo at 1.4%

PBoC sells 182.7 bln yuan of 7-day reverse repo at 1.4%

The People's Bank of China (PBoC) conducted a 7-day reverse repo operation in the open market on July 2, 2025, selling a total of RMB182.7 billion at an operation rate of 1.4% [1]. This operation was part of the central bank's ongoing efforts to manage liquidity and influence short-term interest rates.

The reverse repo operation, which involves the sale of securities by the PBoC to commercial banks, resulted in a net injection of RMB182.7 billion into the market. This injection is expected to provide additional liquidity to the banking system, potentially supporting economic growth and financial stability.

The operation rate, or the interest rate at which the PBoC sold the securities, remained unchanged at 1.4%. This rate is in line with the central bank's recent monetary policy, which has aimed to maintain stability in the financial system while supporting economic recovery.

The PBoC's actions are part of a broader strategy to manage monetary conditions and respond to economic developments. By adjusting the supply of liquidity through reverse repo operations, the central bank can influence short-term interest rates and help stabilize the financial system.

The latest operation underscores the PBoC's commitment to maintaining monetary stability and supporting economic growth. As the global economy continues to recover from the pandemic, the central bank's actions will be closely watched by investors and financial professionals alike.

References:

[1] AASTOCKS Financial News. (2025). "PBoC Sells 182.7 Billion Yuan of 7-Day Reverse Repo at 1.4%". Retrieved from https://www.aastocks.com/en/stocks/analysis/china-hot-topic-content.aspx?catg=4&id=NOW.1465984&source=AAFN