The People’s Bank of China (PBOC) will conduct a 500-billion-yuan (approximately US$73.6 billion) outright reverse repo operation on Wednesday to maintain ample liquidity in the country’s banking system.
The three-month operation will be conducted with a fixed quantity through interest-rate bidding, with successful bids determined at multiple price levels. The move is part of the central bank’s measures to ensure sufficient liquidity and maintain stable conditions in China’s financial system.
China introduced outright reverse repo operations in October 2024 as a liquidity management tool. These operations are generally conducted once a month and have a maturity period of no more than one year.
