Beijing: The People's Bank of China (PBOC) announced it will conduct a direct reverse repurchase operation worth 500 billion yuan (around $70 billion) today to maintain ample liquidity in the country's banking system.
According to Bahrain News Agency, the six-month operation will be carried out using a fixed quantity bidding method, interest rates, and multiple price tenders.
The PBOC introduced direct reverse repos in October 2024 as a liquidity management tool, implemented monthly for a term not exceeding one year. This option has expanded the country's monetary policy toolkit alongside temporary repos, temporary reverse repos, and treasury bond purchase and sale operations.