The People's Bank of China (PBOC) has implemented a new facility called open market outright reverse repo operations to manage liquidity in the banking system.
This tool will be used for monthly transactions with primary dealers and aims to maintain a sufficient amount of liquidity.
It is expected to cover three and six-month tenors, allowing for liquidity adjustments throughout the year.
The PBOC's announcement demonstrates its commitment to expanding its monetary policy options in order to support economic stability and growth.