Sunday, October 27, 2024

China's Central Bank Activates Open Market Outright Reverse Repo Operations Facility

One more tool.

From Reuters, October 27:

China's central bank announced on Monday it had activated its open market outright reverse repo operations facility and would use it to trade with primary dealers in open market operations on a monthly basis.

The bank took the decision to maintain a "reasonable abundance of liquidity in the banking system and further enrich the central bank's monetary policy toolbox," it said in a statement.
State-owned Shanghai Securities News said in an article published shortly after the People's Bank of China's (PBOC) notice that the facility was expected to cover three- and six-month tenors and that it would aid liquidity adjustments over the next year, citing people close to the central bank....
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