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China to boost liquidity with $128.35 bn reverse repo

15 Jan '26
1 min read
 China to boost liquidity with $128.35 bn reverse repo
Pic: Shutterstock

Insights

  • The People's Bank of China will conduct a 900-billion-yuan (~$128.35 billion) outright reverse repo operation today to ensure adequate banking liquidity.
  • The six-month, 181-day operation will be carried out in a fixed amount via interest-rate bidding with multiple price levels.
  • Introduced in October 2024, the monthly tool complements repos, reverse repos, and treasury bond operations.
The People's Bank of China has announced it will conduct a 900-billion-yuan (~$128.35 billion) outright reverse repo operation today to maintain adequate liquidity in the banking system.

The operation will be conducted in a fixed quantity through interest-rate bidding, with winning bids set at multiple price levels. It will have a tenor of six months, or 181 days, according to the country's central bank.

Introduced in October 2024, outright reverse repo operations are conducted each month with a tenor of up to one year.

These operations have enriched the country's monetary policy toolkit, complementing previous measures such as temporary repos, temporary reverse repos, and the buying and selling of treasury bonds.

ALCHEMPro News Desk (HU)

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