China’s central bank began conducting daily overnight reverse repurchase operations on Monday, marking the start of a revamped liquidity framework that places the short-term tool at the center of its policy operations.
The People’s Bank of China conducted 541 billion yuan ($81.3 billion) in overnight reverse repos at an interest rate of 1.25%, according to the information provided.
After accounting for maturing reverse repos, the operation resulted in a net withdrawal of 515 billion yuan from the banking system, based on Bloomberg calculations.
Sources: Bloomberg Markets.