Baku, Azerbaijan, Feb. 18
By Rashid Shirinov – Trend:
From February 18, the National Bank of Kazakhstan starts holding deposit auctions with a return period of 7 days, Trend reports via Kazakh media.
At the same time, the financial regulator will stop holding auctions of short-term 7-day notes of the National Bank.
Deposit auctions will be the main tool of open market operations of monetary policy for liquidity withdrawal.
"The changes are aimed at improving the efficiency of the interest rate channel of the National Bank’s monetary policy transmission mechanism," the Bank’s press service said.
Deposit auctions will be held in accordance with the rules of holding auctions of the National Bank of Kazakhstan in the framework of the monetary policy implementation.
A deposit auction is an auction in which the central bank of a country accepts deposits from commercial banks. The main purpose of deposit auctions is the sterilization of the money supply.
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