China injects more liquidity via $139-bn outright reverse repo ops

07 Jun '25

1 min read

China injects more liquidity via $139-bn outright reverse repo ops

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Insights

China's central bank recently conducted a 1-trillion-yuan (~$139 billion) outright reverse repo operation to maintain ample liquidity in the banking system.
The operation will carry a three-month tenor and was conducted using a fixed-quantity, interest-rate-bidding and multiple-price-bidding method.
The move is expected to control money market fluctuations and anchor market expectations.

China’s central bank recently conducted a 1-trillion-yuan (~$139 billion) outright reverse repo operation to maintain ample liquidity in the banking system.

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.

Fibre2Fashion News Desk (DS)

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