The People's Bank of China launched on Friday a 500-billion-yuan (about 73.8-billion-U.S.-dollar) outright reverse repo operation through a fixed-quantity, interest rate bidding and multi-price winning bid method, in efforts to maintain ample liquidity in the country's banking system.
The winning bids of the operation are determined at various price levels. It will have a term of three months, or 92 days, with a maturity date set for Sept. 5, according to the central bank.
Outright reverse repo operations -- a tool the central bank introduced in October 2024 to manage liquidity in the national banking system -- are conducted each month with a term of no more than one year.
These operations have enriched the country's monetary policy toolkit, complementing previous measures such as temporary repos, temporary reverse repos, and the purchase and sale of treasury bonds.
China's central bank conducts 500-bln-yuan outright reverse repo operation
