BEIJING, April 14 (Xinhua) -- The People's Bank of China on Tuesday announced that it will carry out a 500-billion-yuan (about 72.89 billion U.S. dollars) outright reverse repo operation on Wednesday to maintain ample liquidity in the banking system.

Photo taken on March 13, 2018 shows the headquarters of the People's Bank of China. (Photo: Xinhua)

The operation will be carried out with a fixed quantity through interest-rate bidding, with winning bids determined at multiple price levels and featuring a maturity period of six months.

As 600 billion yuan of six-month outright reverse repos are due to mature in April, this means Wednesday's outright reverse repo operation represents a reduced rollover.

Outright reverse repo operations, a tool the central bank introduced in October 2024 to manage liquidity in the national banking system, are carried out once each month with a tenor of no more than one year.

These operations have enriched the country's monetary policy toolkit, complementing previous measures such as temporary repos, temporary reverse repos, and the buying and selling of treasury bonds.