People鈥檚 Bank of China to launch repo facility
19 June 2026 China
Image: Tada_Images/stock.adobe.com
The People鈥檚 Bank of China (PBOC) has announced that it will provide renminbi liquidity to eligible overseas central banking institutions through an RMB repo facility for central banks.
The move aims to support the high-level opening-up of China's financial markets and facilitate the RMB liquidity management of overseas central banking institutions.
Overseas central banking institutions refer to foreign central banks, monetary authorities, international financial organisations, and sovereign wealth funds.
According to the Bank, the facility will operate through both pledged and outright repos.
Eligible collateral includes high-grade RMB bonds recognised by the PBOC, such as Chinese government bonds, central bank bills, and policy financial bonds.
Maturity tenors for the repos will be 7 days, 1 month, and 3 months. The repo rate will be determined by adding a spread to the 7-day reverse repo rate in open market operations.
The move aims to support the high-level opening-up of China's financial markets and facilitate the RMB liquidity management of overseas central banking institutions.
Overseas central banking institutions refer to foreign central banks, monetary authorities, international financial organisations, and sovereign wealth funds.
According to the Bank, the facility will operate through both pledged and outright repos.
Eligible collateral includes high-grade RMB bonds recognised by the PBOC, such as Chinese government bonds, central bank bills, and policy financial bonds.
Maturity tenors for the repos will be 7 days, 1 month, and 3 months. The repo rate will be determined by adding a spread to the 7-day reverse repo rate in open market operations.
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