Securities Repo Purchase Auctions – NBS Provides to Banks Additional Liquidity Worth RSD 25.2 Billion
At today’s auctions of repo purchase of dinar government securities, the NBS provided to banks RSD 4.7 bn for a period of seven days and RSD 20.5 bn for a period of three months, at a favourable interest rate of 0.75% for both maturities, which is equal to the deposit facility rate (the lowest rate in the NBS interest rate corridor).
In addition to the additional FX swap auction, held on 23 March, where the NBS supplied banks with RSD 14.9 bn for a period of three months, in today’s repo auctions, the NBS supplied banks with RSD 25.2 bn. In other words, via these two instruments, RSD 40.1 bn was provided to banks. By holding auctions of repo purchase of government dinar securities, the NBS continued supporting the domestic financial and overall economic system in the emergency state declared by the Republic of Serbia amid the spread of COVID-19.
As so far, the NBS will keep a close eye on banking sector liquidity and movements in the financial market, ready to hold further auctions of repo purchase of government securities 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 money market and the financial system at large.