BEIJING, Aug. 7 (Xinhua) -- The People's Bank of China (PBOC), the country's central bank, said on Thursday that it will conduct a 700-billion-yuan (about 98.11 billion U.S. dollars) outright reverse repo operation on Friday, to maintain ample liquidity in China's banking system.

This operation will carry a three-month tenor and be conducted using a fixed-quantity, interest-rate-bidding and multiple-price-bidding method, according to the PBOC statement.

Wang Qing, an analyst with Golden Credit Rating, said the operation will help inject medium-term liquidity into the market -- signaling the continued strengthening of quantitative monetary policy tools.

Outright reverse repo operations, a tool the central bank introduced in October 2024 to manage liquidity in the banking system, are carried out once each month with a tenor of no more than a year.

This new option has enriched the country's monetary policy toolkit following the earlier introduction of temporary repos, temporary reverse repos, and the buying and selling of treasury bonds. Enditem