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.
The operation will carry a three-month tenor and was conducted using a fixed-quantity, interest-rate-bidding and multiple-price-bidding method, the People's Bank of China (PBOC) said.
The move is expected to control money market fluctuations and anchor market expectations, a state-controlled news agency reported.
The country also uses temporary repos, temporary reverse repos, and the buying and selling of treasury bonds in its monetary policy toolkit.
ALCHEMPro News Desk (DS)
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