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CBA PUBLISHES ITS FINANCIAL MARKET INSTRUMENTS
Noyan Tapan
Apr 03 2006
YEREVAN, APRIL 3, NOYAN TAPAN. The Central Bank of Armenia (CBA)
published the new set of its instruments and the logic of its
activities on the financial market. According to the CBA press service,
these are: The main instrument of refinancing - a 7-day repo to be used
each Wednesday. The structural instument - the isssuing of CBA bonds,
mainly 3-month bonds, although 6 and 12-month issues are not ruled
out either. The rectifying instruments to be applied for correcting
the short-term deviations from the target indices of liquidity
and interest rates (mainly by repo and reverse repo instruments and
foreign currency). The constant possibility instruments - deposit and
lombard credit to be used for a 1-day period. The interest rates are
set based on the interest rate of refinancing. It is noted that the
interest rate of lombard credit has been lowered to 8%. At a board
sitting to be held each month, the CBA will determine and publish
within next month the refinancing (repo) interest rate, the constant
possibility interest rate, as well as the volume, maturity and issue
date of bonds to be issued by the CBA. Market participants will be
provided explanations about rectifying instruments, implemented in
addition to the previously announced operations.
Noyan Tapan
Apr 03 2006
YEREVAN, APRIL 3, NOYAN TAPAN. The Central Bank of Armenia (CBA)
published the new set of its instruments and the logic of its
activities on the financial market. According to the CBA press service,
these are: The main instrument of refinancing - a 7-day repo to be used
each Wednesday. The structural instument - the isssuing of CBA bonds,
mainly 3-month bonds, although 6 and 12-month issues are not ruled
out either. The rectifying instruments to be applied for correcting
the short-term deviations from the target indices of liquidity
and interest rates (mainly by repo and reverse repo instruments and
foreign currency). The constant possibility instruments - deposit and
lombard credit to be used for a 1-day period. The interest rates are
set based on the interest rate of refinancing. It is noted that the
interest rate of lombard credit has been lowered to 8%. At a board
sitting to be held each month, the CBA will determine and publish
within next month the refinancing (repo) interest rate, the constant
possibility interest rate, as well as the volume, maturity and issue
date of bonds to be issued by the CBA. Market participants will be
provided explanations about rectifying instruments, implemented in
addition to the previously announced operations.