Beijing: The People's Bank of China has announced plans to execute a 500-billion-yuan (approximately US$72.89 billion) outright reverse repo operation on Wednesday. This move aims to maintain ample liquidity within the banking system, as reported by Xinhua News Agency.
According to Emirates News Agency, the operation will be executed with a fixed quantity through interest-rate bidding. Winning bids will be determined at multiple price levels, and the operation will feature a maturity period of six months. Notably, this operation follows the impending maturity of 600 billion yuan of six-month outright reverse repos in April, indicating a reduction in rollover.
Outright reverse repo operations are a tool introduced by the central bank in October 2024 to manage liquidity within the national banking system. These operations are conducted once each month with a tenor not exceeding one year.
