The central bank rejected the request of banks for loans
According to Iran Economist, in the week when the orders sent by banks in the open market were 4 thousand billion tomans more than the previous week, the central bank kept its money injection in this market constant at 89.6 thousand billion tomans.
to report Tejarat NewsThe Central Bank, which publishes a report on its official website every week, announces the statistics and figures related to the open market and the interbank market in the form of a monetary policy executive report, today also published the data related to the first week of October.
Reviewing the report of the Central Bank shows that the amount of orders sent by banks in the open market has increased for the second consecutive week, but the amount of money injected by the Central Bank in this market has remained constant. Nevertheless, it seems that the central bank this week has also solved part of the banks’ needs through the interbank market; So that the central bank’s intervention in the night market and in the form of systematic crediting has increased to about 8.5 thousand billion tomans, which has been unprecedented since the third week of June.
Summary of open market operations of Central Bank since the beginning of 1401
What happened in the 27th open market auction?
The report published by the central bank shows that in the week ending on October 3 this year, 21 banks and non-bank credit institutions participated in the 27th open market auction this year.
Of course, the details of this auction were not different from those of the previous weeks; The duration of the repurchase agreement between banks and the central bank was still seven days, and the minimum repurchase agreement rate, which is better known as the repo rate in economic literature, also remained constant at 23% for the 28th consecutive week.
The data published by the central bank indicate that in the open market operation of the week ending on the third of October, the country’s banks have sent orders for borrowing from the central bank for about 130 thousand billion tomans.
The orders sent by the banks this week were about four thousand billion tomans more than the previous week, but the central bank kept the amount of its money injection in this market unchanged compared to last week, at 89.6 thousand billion tomans. In this way, the central bank did not accept part of the orders received from the banks for the third consecutive week.
Of course, it should be noted that more than 90 thousand billion Tomans of the past borrowings of the banks matured this week and these resources returned to the central bank so that the net operation of the central bank in the open market this week will also be negative.
What is an open market?
Open market operation is one of the mechanisms that gives banks the opportunity to cover their resource deficit by borrowing from the central bank.
By placing an order in the open market, banks hand over their bonds to the Central Bank and in return receive the amounts they need. However, the banks are required to return this amount to the central bank at the time of maturity, plus its interest rate, which is the same rate as the repurchase agreement.