China's central bank to conduct 500-billion-yuan outright reverse repo operation

 The People's Bank of China, the country's central bank, on Tuesday announced that it will carry out a 500-billion-yuan (about 73.6 billion U.S. dollars) outright reverse repo operation on Wednesday to maintain ample liquidity in the banking system.

This operation will be carried out with a fixed quantity through interest-rate bidding, with winning bids determined at multiple price levels and featuring a maturity period of three months.

As 300 billion yuan of three-month outright reverse repos are due to mature in August, this means Wednesday's outright reverse repo operation represents an increased rollover.

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.

These operations have enriched the country's monetary policy toolkit, complementing previous measures such as temporary repos, temporary reverse repos, and the buying and selling of treasury bonds.