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China's PBOC introduces new liquidity tool ‘outright reverse repos’
Oct 29, 2024
Insights
- The People's Bank of China recently incorporated a new liquidity tool called outright reverse repos into its monetary policy to keep liquidity reasonable and ample in the domestic banking system.
- It will use these to trade with primary dealers in open market operations.
- The tool is expected to better offset the concentrated maturity of the medium-term lending facility before the end of the year.