China's central bank to conduct 400-billion-yuan outright reverse repo operation

BEIJING, June 13 (Xinhua) -- The People's Bank of China (PBOC), the country's central bank, said on Friday that it will conduct a 400-billion-yuan (about 55.7 billion U.S. dollars) outright reverse repo operation on June 16 to maintain ample liquidity in China's banking system.

The operation will carry a six-month tenor and be conducted using a fixed-quantity, interest-rate-bidding and multiple-price-bidding method, according to the PBOC statement.

Outright reverse repo operations -- a tool the central bank introduced in October 2024 to manage liquidity in the banking system -- are carried out once each month with a tenor of no more than a year.

This new option has enriched the country's monetary policy toolkit following the introduction of temporary repos, temporary reverse repos, and the buying and selling of treasury bonds. ■