China conducts outright reverse repo operations

China's central bank announced on Friday that it has conducted "outright reverse repo" operations, marking the second use of this monetary policy tool since it was introduced in October this year.

In a statement, the People's Bank of China said it carried out the operations in the amount of 800 billion yuan (about 111.3 billion U.S. dollars) through a variable-rate tender with a fixed quantity and multi-price auction, with a tenor of three months.

The move was aimed at keeping liquidity in the banking system adequate at a reasonable level, according to the central bank.

On Oct. 31 this year, the central bank announced that it has conducted "outright reverse repo" operations, the first of its kind since the monetary policy tool was introduced.

On Oct. 28, the central bank unveiled the instrument of outright reverse repo operations on the open market to enrich its monetary policy toolkit.