New PBOC repo facility for overseas central banks
The People's Bank of China (PBOC) will launch an RMB repo facility to provide liquidity to eligible overseas central banking institutions. This initiative aims to support the opening-up of China's financial markets and facilitate RMB liquidity management.
Liquidity for global central banks
The People's Bank of China (PBOC) will launch an RMB repo facility to provide liquidity to eligible overseas central banking institutions.
This includes foreign central banks, monetary authorities, international financial organizations, and sovereign wealth funds.
The initiative supports the high-level opening-up of China's financial markets and facilitates RMB liquidity management for these entities.
Operational details and collateral
The repo facility will operate using both pledged and outright repurchase agreements.
Eligible collateral includes high-grade RMB bonds, such as Chinese government bonds, central bank bills, and policy financial bonds.
Maturity tenors offered are 7 days, 1 month, and 3 months.
The repo rate will be set by adding a spread to the 7-day reverse repo rate from open market operations.