China central bank injects 181.7 billion yuan via 7-day reverse repos at 1.40%, unchanged from prior.

China central bank injects 181.7 billion yuan via 7-day reverse repos at 1.40%, unchanged from prior.

The People's Bank of China (PBOC) has injected 181.7 billion yuan into the market via 7-day reverse repos at an unchanged rate of 1.40%, according to the latest monetary policy announcement. This move is part of the central bank's ongoing efforts to stabilize the financial market and support economic growth in the face of geopolitical tensions and trade frictions.

The reverse repo operation, which involves the central bank purchasing short-term securities from commercial banks, serves to inject liquidity into the system. By doing so, the PBOC aims to ensure adequate funding for financial institutions, facilitate smooth market operations, and maintain stability in the interbank market.

This latest injection follows a series of measures announced by the PBOC to support the development of the Chinese yuan bond market in Hong Kong. The central bank has pledged to enhance the efficiency of yuan bond use, expand the pool of swap market makers, and raise the daily net trading limit to 45 billion yuan. These steps are part of a broader strategy to internationalize the yuan and increase its global usage .

The central bank's supportive monetary policy has been highlighted by Governor Pan Gongsheng, who emphasized the importance of balancing domestic and external situations. He expects the global monetary system to become multipolar, reflecting China's efforts to diversify its financial ecosystem .

These moves underscore the PBOC's commitment to maintaining financial stability and promoting the yuan's role in global financial markets. As the world's second-largest economy, China's financial policies have significant implications for global markets, and investors are closely watching the PBOC's actions for signs of future policy shifts.