Daily open market operations paying off – National Bank of Denmark
Introduction of daily open market operations has smoothed liquidity management
Daily open market operations launched in February are paying off, with signs of smoother liquidity management in markets, the National Bank of Denmark said in a report today (March 15).
The central bank introduced daily purchases and sales of certificates of deposit to enable banks to place or obtain liquidity on a daily basis. The decision followed three weeks of trials around the turn of the year and many extraordinary market operations, particularly in 2016.
The move supports the “smooth
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