FX.co ★ PBOC to Conducts CNY 1 Trillion Outright Reverse Repo

The People’s Bank of China (PBOC) announced on Thursday its intention to conduct a substantial CNY 1 trillion (approximately USD 140.74 billion) outright reverse repo operation on Friday, September 5, 2025. This initiative is part of its strategy to ensure sufficient liquidity within the national banking system. The operation is structured with a three-month term (91 days) and will be implemented using a fixed-quantity, interest-rate-bidding, and multiple-price-bidding approach, as stated by the PBOC. With the same sum of CNY 1 trillion in three-month outright reverse repos set to mature on September 5, this new operation effectively rolls over the existing amount. This move represents the most sizeable three-month outright reverse repo operation since January 2025. Outright reverse repo operations, a mechanism introduced by the PBOC in October 2024 for managing banking system liquidity, occur on a monthly basis and are designed for durations not exceeding one year.