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China central bank activates open market outright reverse repo operations facility

BY Reuters | ECONOMIC | 10/27/24 08:27 PM EDT

BEIJING, Oct 28 (Reuters) - 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. The operations will be carried out once a month, with a tenor of less than one year. (Reporting by Joe Cash; Editing by Tom Hogue)

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