Regulatory Alerts2024-07-22
Operating Guideline for Open Market Operations and Standing Facilities (MFAD/OMO&SFs/001/2024)
The National Bank of Ethiopia issues this operating guideline to standardize procedures for Open Market Operations and Standing Facilities, enabling eligible commercial banks to manage liquidity through Intraday Lending, Standing Lending, and Standing Deposit facilities. The document mandates specific application protocols, collateral valuation with applicable haircuts, bi-weekly auction schedules, and clear settlement timelines for liquidity provision and absorption. It establishes interest rate announcement mechanisms, conversion rules for unpaid intraday loans into standing facilities, and penalty charges for settlement failures, taking effect on July 11, 2024.
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