FX.co ★ PBoC Conducts CNY 500 Billion Reverse Repo, Expands Liquidity Support

The People’s Bank of China (PBoC) announced it will conduct a CNY 500 billion three‑month outright reverse repo operation on Wednesday to ensure ample liquidity in the banking system. The operation will use interest‑rate bidding with a fixed total amount, and winning bids will be allocated at multiple price levels. With CNY 300 billion of three‑month outright reverse repos maturing in August, this move results in a net increase in rollover, underscoring continued liquidity support. Introduced in October 2024, outright reverse repos have become a key liquidity management tool, enabling the central bank to inject medium‑term funds with maturities of up to one year.