China conducts first outright reverse repo operations

BEIJING, Oct. 31 (Xinhua) — China’s central bank announced Thursday that it has conducted “outright reverse repo” operations, the first of its kind since the monetary policy tool was introduced earlier this week.
In a statement, the People’s Bank of China said it carried out the operations in the amount of 500 billion yuan (about 70.2 billion U.S. dollars) through a variable-rate tender with a fixed quantity and multi-price auction, with a tenor of six months.
The move was aimed at keeping liquidity in the banking system adequate at a reasonable level, according to the central bank.
On Monday, the central bank unveiled the instrument of outright reverse repo operations on the open market to enrich its monetary policy toolkit. ■