China's Central Bank to Conduct 1-Trillion-Yuan Outright Reverse Repo Operation

What happened

The People's Bank of China (PBOC) said Thursday it will conduct a 1-trillion-yuan (about 147.3 billion U.S. dollars) outright reverse repo operation on Friday. The operation has a tenor of six months (185 days) and matures on Feb. 15, 2027. It serves as a rollover for maturing repos in August.

Why it matters

Outright reverse repo operations, introduced in October 2024, are conducted once a month with a tenor of no more than one year. These operations strengthen the country's monetary policy toolkit by managing liquidity, complementing previous measures like temporary repos and treasury bond transactions.