The People’s Bank of China continues to decline to let the market decide on the CNY rate. Each day they hand down their decision to the hoi polloi
- yesterday's mid point was set at 6.5578
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PBOC money market activity today:
- Injects 290 bn yuan through 28 day reverse repos
- Injects 110 bn yuan through 7-day reverse repos
Huge. Much greater than normal. Liquidity provision ahead of the new year holiday? Yes, but there is more to it than that IMO. We haven't seen a rate cut or RRR cut yet, but big cash injection today nevertheless.
Biggest cash injection in 3 years through open market operations
The bank has injected 315bn yuan this week (against a 40bn yuan injection last week)
