Česká národní banka


CNB > Financial markets > Money market information > Parameters of the liquidity-providing repo operations

Parameters of the liquidity-providing repo operations

  • the operations are announced once a week (always on Monday) and bids are accepted usually between 12 a.m. and 1 p.m.;
  • settlement takes place on T+2;
  • maturities are two weeks;
  • banks’ bids will be fully satisfied at a fixed rate corresponding to the 2W repo rate + 10 b.p.;
  • the list of eligible collateral is published on the CNB’s website; new bond issues will not be added automatically to the list;
  • the haircut will be 2% for notes (Treasury notes as well as CNB notes) and 4% for other accepted collateral;
  • the minimum bid amount will be CZK 10 million;
  • all counterparties that have concluded the Master Agreement on trading on the financial market with the CNB will be allowed to participate in the repo operations;
  • information on the refinancing facility are published on the CNB’s website and on the websites of Reuters (page CNB04) and Bloomberg (page CNB04).

The existing set of monetary policy instruments remains unchanged.

Counterparties to monetary policy operations pursuant to Official Information of the Czech National Bank of 20 April 2007, on the Manner of Execution of the Czech National Bank’s Operations on the Domestic Money Market, that have not concluded the Master Agreement on trading on the financial market may apply to become parties to this agreement.


The technical parameters of the extraordinary interbank market support operations valid from January 2011

The Bank Board of the Czech National Bank has adjusted the extraordinary liquidity-providing monetary measures introduced in October 2008 to support the domestic financial market during the global financial crisis. Under the approved changes, which reflect current market conditions, the three-month liquidity-providing repo operations will be discontinued at the end of 2010. The Bank Board has decided that the two-week liquidity-providing repo operations will remain in place at least until the end of 2011.

The technical parameters change as follows:

Adjustment of two-week liquidity-providing repo operations until 31 December 2010 from 1 January 2011
Frequency of repo operation: twice a week (Monday and Friday) once a week (Monday)
Banks’ bids satisfied at fixed rate: 2W repo rate + 10 b.p. 2W repo rate + 10 b.p.

Note: The remaining parameters of liquidity-providing repo operations remain unchanged.

Adjustment of foreign exchange swaps until 31 December 2010 from 1 January 2011
Maximum maturity: three months two weeks
Haircut applied: 10% 5%

Note: Foreign exchange swaps are conducted on the basis of a bank’s request for the provision of koruna liquidity against the euro. For the purposes of the swap, the exchange rate is lowered by 5% to eliminate exchange rate risk. The other parameters (e.g. delivery after delivery settlement) remain unchanged.

Exchange of collateral (from now on a standard operation):

On request, the CNB exchanges collateral settled in the Central Securities Depository for collateral settled in the Short-Term Bond System (SKD). The aim is to provide banks with enough securities, for example for drawing on intraday credit. The CNB does not regard exchange of collateral as a classical monetary operation; rather, it is a technical operation.


Information on the CNB’s measures on the Czech financial market  (14 Oct 2008) and adjustment of technical parameters of liquidity-providing repo operations (20 Nov 2008)