Central Bank stops overnight auctions

The Central Bank has stopped overnight auctions to withdraw excess liquidity from money markets until further notice, while term auctions of securities will continue, officials said.

The Central Bank has a 7.25 percent repo rate where banks can deposit excess reserves and a 9.0 percent reverse repo rate through which money can be borrowed.

Banks can continue to deposit excess money in the overnight rate at 7.25 percent an official said.

The Central Bank will continue term auctions to take away the excess liquidity when the need arises, said an official. Overnight open market operations to withdraw excess liquidity from the money market has been hailed while term auctions of securities will continue.

Last month the country raised a billion dollars in the international markets of which only about 50 percent was used for debt repayment.