PBOC to Conduct 500 Billion Yuan Outright Reverse Repo Operation on September 15

September's outright reverse repo will achieve an equal-amount rollover.

The People's Bank of China announced on September 14 that, in order to maintain ample liquidity in the banking system, it will conduct a 500 billion yuan outright reverse repo operation on September 15, 2026, through a fixed-quantity, rate-bidding tender with multiple-price awards. The operation will carry a six-month (181-day) term, maturing on March 15, 2027 (postponed in case of holidays).

Since 500 billion yuan of six-month (182-day) outright reverse repo operations mature in September, tomorrow's operation will achieve an equal-amount rollover. On September 7, the PBOC likewise rolled over three-month outright reverse repos in equal amounts.

Experts noted that this year the PBOC has comprehensively employed a variety of monetary policy tools to keep liquidity ample. Several recent reform measures to improve the short-end interest rate control framework have further enhanced the precision and effectiveness of the central bank's liquidity management. Meanwhile, reform of the loan rate pricing benchmark has continued to advance: loans priced off the DR benchmark rate have been rolled out across multiple provinces, and the market-based loan rate pricing system has been further improved, which also helps boost the transmission of monetary policy to the real economy. Social financing costs have remained low, and the monetary and financial environment is generally accommodative.

To maintain reasonably ample liquidity in the banking system and further enrich its monetary policy toolkit, the PBOC launched the outright reverse repo operation as an open market instrument in October 2024. The counterparties are primary dealers of open market operations; the operation is conducted in principle once a month, with a term of no more than one year.

Source: The Paper (澎湃新闻)