The central bank: optimizing the temporary overnight repo and reverse repo operation mechanism in the open market.

On June 17, the People's Bank of China announced that in order to flexibly and efficiently use open market temporary overnight repo and reverse repo tools, it has decided to optimize operational elements. Starting from the same day, the operation time will be adjusted to 15:00-15:30 on working days. The operation rates will be adjusted to a minus 25 basis points and a plus 25 basis points for the 7-day reverse repo operations in the open market. Further clarification of the rules for using the tools. When the overnight interest rate (DR001) in the money market continues to be lower or higher than the corresponding operation rate of the tools, the People's Bank of China will initiate corresponding operations based on the demand of primary dealers. This article is excerpted from the official website of the People's Bank of China. Editor: Feng Qiuyi.