HKMA launches new liquidity facility
Banks able to borrow overnight against government bonds
The Hong Kong Monetary Authority (HKMA) today unveiled a new discount facility that will see the central bank accept government bonds as collateral in its liquidity operations for the first time.
The new repo facility, which will provide up to HK$10 billion ($1.2 billion) in overnight liquidity against Hong Kong dollar-denominated government bonds, aims to "provide greater flexibility for banks to manage liquidity", the HKMA said in a statement.
The central bank added it would obtain funding
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