Open market operations: Difference between revisions
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imported>Doug Williamson (Update. Source: Bank of England Red book June 2015.) |
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The buying or selling of financial securities in the open market by a central bank to influence the amount of money in circulation. | The buying or selling of financial securities in the open market by a central bank to influence the amount of money in circulation. | ||
The range of instruments used by central banks has tended to increase following the financial crisis early in the 21st Century. | The range of instruments used by central banks has tended to increase following the financial crisis early in the 21st Century. | ||
For example, the European Central Bank operates through Euro-member states' National Central Banks (NCBs) | For example, the European Central Bank operates through Euro-member states' National Central Banks (NCBs). | ||
It lists as available to an NCB "reverse transactions" that are applicable on the basis of repurchase agreements or collateralised loans, outright transactions, issuance of debt certificates, foreign exchange swaps and collection of fixed-term deposits. | |||
== See also == | == See also == | ||
* [[Bank of England]] | * [[Bank of England]] | ||
* [[Central bank]] | |||
* [[Collateral]] | |||
* [[European Central Bank]] | |||
* [[Foreign exchange swap]] | |||
* [[Monetary policy]] | * [[Monetary policy]] | ||
* [[POMO]] | * [[POMO]] | ||
* [[Security]] | |||
[[Category:The_business_context]] | |||
[[Category:Identify_and_assess_risks]] | |||
[[Category:Manage_risks]] | |||
[[Category:Risk_frameworks]] | |||
[[Category:Cash_management]] | |||
[[Category:Financial_products_and_markets]] | |||
[[Category:Liquidity_management]] | |||
Latest revision as of 23:54, 20 April 2020
(OMOs or OMO).
The buying or selling of financial securities in the open market by a central bank to influence the amount of money in circulation.
The range of instruments used by central banks has tended to increase following the financial crisis early in the 21st Century.
For example, the European Central Bank operates through Euro-member states' National Central Banks (NCBs).
It lists as available to an NCB "reverse transactions" that are applicable on the basis of repurchase agreements or collateralised loans, outright transactions, issuance of debt certificates, foreign exchange swaps and collection of fixed-term deposits.
