Moldova: Financial markets
Financial markets
Since its formation, the National Bank of Moldova acts on the credit market by supporting commercial banks liquidity. Initially, the NBM credit resources were distributed through refinancing auctions on competitive basis. The term of resources granted through auctions gradually decreased from 3 months to 1 month; thus, banks are given the possibility to use resources for liquidity maintenance.
Refinancing auctions were replaced in July 1998 with open market operations (OMO). OMO are performed following the NBM initiative with commercial banks-Primary Dealers; depending on the objective of the monetary policy, OMO can be performed as acquisition of state securities, as selling of state securities or as state securities repurchase agreements (REPO).
See also:
NBM - The Central Bank of the Republic of Moldova
Source: Moldova's National Bank (Central Bank)
