Agreement to buy back 800 thousand billion Rials in the interbank market
According to Iran Economist, quoted by Central Bank Public RelationsAccording to the monetary policy executive operations report, according to the Central Bank’s prediction of the liquidity situation in the interbank market, the operational position of the Central Bank this week was the repurchase agreement. Therefore, this bank implemented open market operations in the form of a repurchase agreement in the amount of 800.0 thousand billion Rials.
The monetary policy executive operations report is as follows:
In the framework of the liquidity management required by the Riyal interbank market, the Central Bank implements open market operations on a weekly and case-by-case basis. The operational position of this bank (buying or selling through existing tools) is announced based on the prediction of the liquidity situation in the interbank market and with the aim of reducing the fluctuations of the interbank market rate around the target rate, through the publication of a notice in the interbank market system. Following the aforementioned announcement, banks and non-bank credit institutions can send orders through the interbank market system by the specified deadline in order to manage their liquidity in the interbank market.
Banks and non-banking credit institutions can use regular crediting (receiving credit with collateral from the central bank) on Saturdays to Wednesdays, provided they have government Islamic financial bonds and in the form of a repurchase agreement with the ceiling rate of interest rate (24%).
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