China Brief
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EconomyPeople's Daily Online (人民网)

China's central bank to conduct overnight reverse repos to manage short-term liquidity

央行将开展隔夜逆回购操作

The People's Bank of China announced it will carry out overnight reverse repo operations on four specific dates in mid-August. According to the announcement, the move is designed to better match short-term liquidity needs in the banking system. The operations will use a fixed-rate, quantity-based bidding mechanism, with each day's volume capped at 600 billion yuan.

The view from inside

The report frames the action as a technical refinement of monetary policy tools, following the introduction of the overnight reverse repo as a new instrument in late June.

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