Beijing: The People's Bank of China has announced plans to execute a direct reverse repurchase operation amounting to 600 billion yuan, equivalent to approximately USD 84.48 billion, on September 15. This operation aims to ensure sufficient liquidity within the banking system.
According to Bahrain News Agency, this operation will be conducted over a period of six months, specifically 182 days, and will utilize fixed rate tenders along with multiple price bidding. Wang Qing, the Chief Macro Analyst at Golden Credit Rating, noted that this initiative will inject liquidity into the market and underscores the ongoing application of quantitative monetary policy tools, which are intended to stabilize market expectations.
The central bank first introduced direct reverse repos as a liquidity management instrument in October 2024. These operations are implemented on a monthly basis, with each having a maturity of up to one year.