PBOC to Conduct Overnight Reverse Repos From September 14 to 17, 2026
The People's Bank of China announced on September 10 that it will conduct overnight reverse repurchase operations from September 14 to September 17, 2026, using a fixed-rate, quantity-based tender with a daily cap of RMB 600 billion. The PBOC added the overnight reverse repo to its open market operations at the end of June 2026 to further refine its interest rate framework and broaden its tool tenors.
The People's Bank of China said in an announcement on September 10 that, to better match short-term liquidity demand in the banking system, it will conduct overnight reverse repurchase operations from September 14 to September 17, 2026, using a fixed-rate, quantity-based tender, with daily operation amounts not exceeding RMB 600 billion.
At the end of June 2026, the People's Bank of China added the overnight reverse repurchase operation to its open market operations, in order to further improve the interest rate regulation mechanism and enrich the range of instrument tenors.
The overnight reverse repurchase operation can play a role in smoothing peaks and filling troughs at certain special points in time; conducting this operation can improve the efficiency of liquidity management and reduce the costs of financial institutions.