The NBS Head Office Building was built from 1888 – 1890, on the basis of blueprints designed by Konstantin Jovanovic (Vienna 1849 – Zurich 1923), son to distinguished artist Anastas Jovanovic...
20/03/2020
On Tuesday, 24 March, the NBS will hold two repo auctions to buy dinar government securities, with transaction maturity of seven days and three months, at a favourable interest rate of 0.75% (equal to the deposit facility rate).
These auctions represent yet another type of support to the domestic financial system and economy amid the spread of the coronavirus (COVID-19).
Hence, in addition to the additional swap auction of FX purchase to be organised on Monday, 23 March, banks will be given another opportunity to obtain the necessary dinar liquidity. By holding these two types of auctions (repo purchase of securities and swap purchase of foreign exchange), the NBS aims to facilitate liquidity management for banks. In this way, banks will be able to obtain the necessary dinar liquidity on account of both dinar government securities (repo auctions) and foreign exchange (FX swap auctions), which would serve as collateral in the said transactions with the central bank.
The NBS will continue to keep a close eye on banking sector liquidity and movements in the local financial market, ready to hold repo auctions and additional FX swap auctions if necessary, as well as to use all other instruments at hand, in order to ensure smooth functioning of the domestic financial system and economy.
Governor's Office
