Turnovers on the money market in the week of 6 - 10 October 2008
In the week of 6 - 10 October 2008 a regular survey was conducted on the daily average turnovers on the money market. This survey is carried out by the Czech National Bank regularly twice a year with participation of all relevant domestic banks trading on the money market.
As compared to April 2008 figures the daily average turnover of deposit operations increased from CZK 77.2 bln. to CZK 86.6 bln. The most significant change in comparison with the last survey was an increase in the volume of the trades with O/N maturity driven mostly by increase in trades among residents (by 75 percent). The volume of other maturities experienced a huge decline.
The most significant among deposit operations were deposit operations with the maturity up to 1 week (99 percent), in particular O/N operations comprising 91 percent share of the total turnover. This was caused mainly by tightening of banks´ credit policy. The longer maturities and repo operations were traded rarely.
Derivative transactions IRS (Interest Rate Swap) and FRA (Forward Rate Agreement) dropped sharply by 77 and 90 percent, respectively, compared to the last survey, mainly due to spread widening caused by high volatility and risk aversion.