The People’s Bank of China (PBOC), the country’s central bank, said Thursday that it will conduct a 1-trillion-yuan (about 147.3 billion U.S. dollars) outright reverse repo operation on Friday to maintain ample liquidity in the banking system.
The operation will have a fixed quantity and be conducted through interest-rate bidding, with winning bids determined at various price levels. It will have a tenor of six months, or 185 days, with a maturity date of Feb. 15, 2027.
As 1 trillion yuan of six-month outright reverse repos are due to mature in August, this means the operation will serve as an equal-amount rollover of the maturing repos.
Outright reverse repo operations, a tool the central bank introduced in October 2024 to manage liquidity in the national banking system, are conducted once each month with a tenor of no more than one year.
PBOC said the operations have strengthened the country’s monetary policy toolkit, complementing previous measures such as temporary repos, temporary reverse repos, and the buying and selling of treasury bonds
