Beijing: The People's Bank of China announced that it will conduct a direct reverse repo operation worth 500 billion yuan (about $70 billion) on Friday to maintain ample liquidity in China's banking system.
According to Yemen News Agency, the operation will last for six months and will be conducted using a fixed-quantity, interest-rate, and multi-price auction method.
The People's Bank of China introduced direct reverse repos in October 2024 as a liquidity management tool in the banking system. These operations are conducted once a month for a period not exceeding one year.
This option has enriched China's monetary policy toolkit after the implementation of temporary repos, temporary reverse repos, and the purchase and sale of treasury bonds.