For the first time! The central bank operates overnight reverse repos in the middle of the month.

Overnight reverse repos have been conducted for the first time in the middle of the month. On August 12, the central bank announced that in order to better match the short-term liquidity needs of the banking system, it would carry out overnight reverse repo operations on August 14 and from August 17 to August 19, using a fixed interest rate and volume bidding, with a daily operation volume not exceeding 600 billion yuan. Since its "debut" on June 29, the overnight reverse repo is being conducted for the first time in the middle of the month. Previously, this tool was mainly used at the end and beginning of the month. Member of the China Chief Economist Forum, Pang Ming, believes that this operation reflects flexibility and proactiveness in liquidity management. He stated that from the timing of the operation, the peak of mid-month tax payments and the seasonal factors of government bond issuance and payment often intertwine, making it easy to trigger a localized tightening of short-term funding and interest rate fluctuations.