BEIJING (Reuters) – China’s central bank announced on Monday it had activated its open market outright reverse repo operations facility and would use it to trade with primary dealers in open market operations on a monthly basis.
The bank took the decision to maintain a “reasonable abundance of liquidity in the banking system and further enrich the central bank’s monetary policy toolbox,” it said in a statement. The operations will be carried out once a month, with a tenor of less than one year.
(Reporting by Joe Cash; Editing by Tom Hogue)
