Reported about 1 month ago
China's central bank is enhancing its monetary policy toolkit with the introduction of outright reverse repurchase agreements, aimed at maintaining sufficient liquidity in the financial system. The People's Bank of China plans to conduct these agreements monthly for up to one year, leveraging sovereign bonds and corporate debt, to facilitate better market conditions. This new tool will complement existing measures and aims to manage increased bond issuance while addressing funding stress among banks. Analysts suggest that these changes may help the PBOC operate more similarly to global counterparts and better respond to upcoming economic challenges.
Source: YAHOO