Sarb introduces collateral substitution for repos
New framework designed to give banks more flexibility in managing collateral
The South African Reserve Bank has altered rules around its repo operations following requests from the banking sector.
In a statement published on June 15, the Sarb announced it would implement collateral substitution arrangements for its main weekly repo operations.
Currently, securities lodged as collateral remain locked with the Sarb until the repo in question has matured. But under the new rules, banks will be able to swap out securities they have previously pledged as collateral, under
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