The People’s Bank of China pumped roughly 231.5 billion yuan into its banking system through 7-day reverse repurchase agreements, holding the rate steady at 1.40%. It’s the latest in a series of substantial liquidity injections that have defined the PBOC’s open-market operations throughout June 2026.
For context, a reverse repo is essentially a short-term loan from the central bank to commercial banks. The “fixed-rate, volume-tender” format means the PBOC sets the price and lets banks decide how much they want to borrow.
A busy month for China’s money printer
On June 23, the central bank conducted a 662.5 billion yuan operation, one of the largest single-day reverse repo injections in recent sessions. That was followed by additional operations of 524.5 billion yuan and 420.3 billion yuan in subsequent days.
The 1.40% rate has remained unchanged across multiple sessions this month. The central bank also plans to introduce overnight reverse repo operations on June 29 and 30, adding a new instrument to its liquidity management arsenal that would give the bank finer control over day-to-day money market conditions.
