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MNI BRIEF: PBOC Launches Outright Reverse Repo For Liquidity

MNI (BEIJING) - The People’s Bank of China revealed Monday it would add outright reverse repo to its monetary policy toolkit to help maintain adequate liquidity in the banking system, targeting trades with primary dealers in its open market operations.

The PBOC will conduct the trades once a month with a maturity period not exceeding one year, a statement on the PBOC's website said, noting the outright reverse repo will use a fixed amount, rate bidding and multiple-price bidding, with treasury, local government, financial, and corporate bonds used as collateral.

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MNI (BEIJING) - The People’s Bank of China revealed Monday it would add outright reverse repo to its monetary policy toolkit to help maintain adequate liquidity in the banking system, targeting trades with primary dealers in its open market operations.

The PBOC will conduct the trades once a month with a maturity period not exceeding one year, a statement on the PBOC's website said, noting the outright reverse repo will use a fixed amount, rate bidding and multiple-price bidding, with treasury, local government, financial, and corporate bonds used as collateral.

Keep reading...Show less