China’s central bank, the People’s Bank of China (PBOC), conducted a 1 trillion yuan (~$147.9 billion) outright reverse repo operation on Friday to maintain ample liquidity in the banking system.
China’s central bank conducted a 1 trillion yuan (~$147.9 billion) six-month outright reverse repo operation on Friday to maintain ample banking-system liquidity.
The 185-day operation, maturing on February 15, 2027, will fully roll over an equal amount of repos due in August.
The PBOC introduced the monthly operations in October 2024 to strengthen its monetary policy toolkit.
The six-month, or 185-day, operation was conducted through interest-rate bidding, with winning bids determined at various price levels.
The operation, which matures on February 15, 2027, serves as an equal-amount rollover of 1 trillion yuan in six-month outright reverse repos due to mature in August.
The PBOC introduced outright reverse repo operations in October 2024 as part of its efforts to manage liquidity.
Conducted monthly with tenors of no more than one year, the operations have expanded China’s monetary policy toolkit alongside temporary repos, temporary reverse repos and treasury bond transactions.
