China's central bank to conduct 600b yuan outright reverse repo operation

BEIJING -- The People's Bank of China, the country's central bank, announced on Friday that it will conduct a 600-billion-yuan (about $88 billion) outright reverse repo operation on Monday to maintain ample liquidity in the banking system.

The operation will have a fixed quantity and be carried out through interest-rate bidding, with winning bids determined at various price levels. It will have a tenor of six months, or 183 days, according to the central bank.

A total of 600 billion yuan of six-month outright reverse repos will mature in June. This implies that the central bank's upcoming operation constitutes a rollover of the same amount, ending three consecutive months of reduced volume operations.

Outright reverse repo operations, a tool the central bank introduced in October 2024 to manage liquidity in the national banking system, are conducted each month with a tenor of no more than one year.