Open Market Operation Types

Open Market Operation Types

Repo

In general, repo transactions are used to increase liquidity of the banking system in cases of temporary liquidity shortages in the market. On the date of the transaction, government securities are purchased from banks/ intermediary institutions with an agreement to sell back the same securities for an agreed upon price at some specified future date. The resale price is fixed on the value date of the purchase transaction. The counterparty commits to purchase the security in the repurchase operation on the maturity date.

Related links

Policy Rate (1 Week Repo)
Data for Repo Auctions
Data for Repo Transactions Through Quotation

Reverse Repo

Reverse repo is a transaction made in order to withdraw the excess liquidity in the market in the event of temporary excess liquidity. Having agreed on the date of the transaction to repurchase them at some specified date in the future at the price fixed at the time of the transaction, the CBRT sells the government securities in its portfolio to the authorized banks/intermediary institutions.

Related Links

Data for Reverse Repo Auctions
Data for Reverse Repo Transactions Through Quotation

Outright Purchase

Outright purchase transactions are generally conducted in case of permanent liquidity shortages in the market. In this type of transaction, the CBRT purchases from the authorized banks/intermediary institutions the government securities in circulation, on the value date, at a price set on the date of the transaction.

Related Links

Data for Outright Purchases Through Auction
Data for Outright Purchases Through Quotation

Outright Sale

Outright sale transactions are generally conducted in case of permanent excess liquidity in the market. In this type of transaction, the CBRT sells the government securities in its open market operations portfolio to the authorized banks/intermediary institutions, on the value date, at a price set on the date of the transaction.

Related Links

Data for Outright Sales Through Auction

Liquidity Bills

Liquidity bills are used to absorb the excess liquidity in the market with a view to increasing the effectiveness of the CBRT’s monetary policy operations. According to Article 52 of the CBRT Law, the CBRT may issue liquidity bills, on its own behalf and for its own account with a maturity of up to 91 days. Liquidity bills can be sold and purchased in the secondary market as well. If necessary, the CBRT may redeem them before maturity. Liquidity bills should not be taken as an alternative investment instrument. They are issued to increase the effectiveness of open market operations when needed.

Related Links

Data for Liquidity Bill Issues

Turkish lira Deposit Buying Auctions

The CBRT may, in order to enhance effectiveness of the operations for sterilizing excess liquidity, provide banks with Turkish lira deposit lending facility via auction method.


CENTRAL BANK OF THE REPUBLIC OF TURKEY Head Office Anafartalar Mah. İstiklal Cad. No:10 06050 Ulus Altındağ Ankara Phone : (+90 312) 507 50 00 | Fax : (+90 312) 507 56 40