China's central bank to conduct 500-bln-yuan outright reverse repo operation

BEIJING, March 13 (Xinhua) -- The People's Bank of China, the country's central bank, on Friday announced that it will conduct a 500-billion-yuan (about 72.46 billion U.S. dollars) outright reverse repo operation on Monday to maintain ample liquidity in the banking system.

The operation will have a fixed quantity and be carried out through interest-rate bidding, with winning bids determined at multiple price levels. It will have a tenor of six months, or 182 days, according to the central bank.

Outright reverse repo operations -- a tool the central bank introduced in October 2024 to manage liquidity in the national banking system -- are conducted each month with a tenor of no more than one year.

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