China's central bank to conduct 500-billion-yuan outright reverse repo operation
Published: August 5, 2026
🤖 AI-generated summary · official source linked below
Last verified: Aug 5, 2026 · Report an issue
Executive Summary
China's central bank, the People's Bank of China, announced a 500-billion-yuan (about $73.6 billion) outright reverse repo operation to maintain ample liquidity in the banking system. The operation, maturing in three months, rolls over and increases maturing outright reverse repos, expanding the central bank's monetary policy toolkit.
Key Points
The PBOC will conduct a 500-billion-yuan outright reverse repo on August 5, 2026, using fixed-quantity, interest-rate bidding with multiple price levels.
The operation has a three-month maturity, and it replaces the 300 billion yuan of three-month outright reverse repos maturing in August, representing a net increase in liquidity support.
Outright reverse repos were introduced in October 2024 to manage banking system liquidity and are conducted monthly with a tenor of no more than one year.
This tool complements other PBOC liquidity measures, including temporary repos, temporary reverse repos, and treasury bond transactions.
The move signals the central bank's continued commitment to keeping money market conditions stable and supporting financial system functioning.
The higher rollover amount indicates a more accommodative liquidity stance compared with the maturing operations, helping to ease short-term funding pressures.
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