You are here: › NBM Money Market Operations
NBM Money Market Operations
The main objective of the National Bank of Moldova in applying its open market operations is to implement an efficient transmission of the interest rates of NBM monetary regulation, to grant assistance to financial institutions in liquidity management issues and to contribute to the banking sector stability.
With a view to achieving the monetary policy goals, the National Bank has a broad range of instruments:
Open market operations:
- Sales of NBM Certificates (NBC), which constitute the NBM marketable debt instruments, traded to absorb liquidity from the money market. NBC may be issued with 1-year maturity; currently, NBM Certificates are issued with terms of 7, 14 and 28 days. Under the conditions of extra liquidity of the banking sector observed lately, the NBM Certificates are the main instrument applied by NBM in the given period of time.
- State securities Repo-selling and Repo-buying operations represent state securities selling operations with further redemption of the same state securities on a certain date or upon request at a certain price, fixed on the selling date. NBM may act as both the seller (Repo-selling operation) and the buyer (Repo-buying operation) of SS, depending on the situation in the money market.
- Deposits accepted by NBM from banks through auctions or direct negotiations are used for the absorption of the structural excess liquidity.
- State securities sales and purchases – rarely applied.
Statistics of the NBM sterilization operations for 2007-2008
Legal Acts
- Regulation on Issuance, Circulation and Redemption of Certificates of the National Bank of Moldova, DCA no.200 of 12.08.2004, OM of the RM no.163-167 of 03.09.2004 (with further modifications and completations)
- Regulation on NBM Deposit Operations in Moldovan Lei with Authorised Banks, decision of CA of NBM no. 424 of 28.12.2000, OM no. 16-18/65 of 15.02.2001 (with relevant modification)
- Regulation on Open Market Operations of the National Bank of Moldova No. 57, approved by the CA of NBM, minutes no.33 of 11.09.97, OM of the RM no.62/103 of 18.09.97 (with further modifications and completions)
