Central Bank Conducts 600 Billion Yuan Outright Reverse Repo Operation Today

A reporter learned from the People's Bank of China that to maintain ample liquidity in the banking system, the PBOC conducted a 600 billion yuan outright reverse repo operation on October 15 using fixed amounts, interest rate bidding, and multiple price awards, with a maturity of 6 months (182 days).

As 500 billion yuan in 6-month outright reverse repos are set to mature in October, this means that after this operation, the volume of 6-month outright reverse repos for the month has been increased by 100 billion yuan through rollover. This also marks the fifth consecutive month that the PBOC has conducted an increased rollover of outright reverse repos.

The outright reverse repo is a new instrument launched by the People's Bank of China in October 2024. It provides additional medium to long-term funds on top of the central bank's daily 7-day reverse repo operations, which are conducted based on the needs of primary dealers. Outright reverse repos enable the central bank to adjust market liquidity more promptly and precisely.