Open market operations

Main refinancing operations

The main refinancing operations, with a weekly frequency and a maturity of one week, are the most important monetary policy instrument used by the Eurosystem for money market management. On an annual average, such operations are used to cover around three-quarters of the banks' need for central bank money.

The operational features of main refinancing operations may be summarised as follows:

• They are liquidity-providing transactions.
• They take place regularly each week (in accordance with the pre-announced tender calendar).
• They are executed in a decentralised manner by the national central banks as standard tenders.
• All counterparties which satisfy the general eligibility criteria may submit bids for main refinancing operations.
• All assets included in the single framework for eligible assets of the Eurosystem (see Eligible assets in the Eurosystem) are eligible as collateral for main refinancing operations.

The main and the longer-term refinancing operations are executed according to an indicative calendar published by the Eurosystem. The calendar is published at least three months before the start of the year for which it is valid. When drawing up the calendar, due account is taken of bank holidays in the individual member states.

Main refinancig operations

• Main refinancing operation of 07/02/2012 (in German only)

Longer-term refinancing operations

The Eurosystem conducts monthly longer-term refinancing operations (basic tenders) with a three-month maturity in order to steady the supply of liquidity and to assist banks which are active in the money market in the security of their operations.

The operational features of the longer-term refinancing operations can be summarised as follows:

• They are liquidity-providing transactions.
• They take place regularly each month (in accordance with the pre-announced tender calendar).
• They are executed in a decentralised manner by the individual national central banks as standard tenders.
• All counterparties which satisfy the general eligibility criteria may submit bids for the longer-term refinancing operations.
• All assets included in the single framework for eligible assets of the Eurosystem (see Eligible assets in the Eurosystem) are eligible as collateral for longer-term refinancing operations.

In addition to the regular basic tenders, the Eurosystem is conducting supplementary longer-term refinancing operations owing to the current financial market turmoil. With these operations, the Eurosystem aims to support the normalisation process and the smooth functioning of the euro money market.

Supplementary longer-term refinancing operations are currently being conducted with a maturity of one maintenance period, each at the beginning of a maintenance period. The operational features are identical to those of the regular longer-term refinancing operations.

Longer-term refinancing operations (in German only)

• Longer-term refinancing operation of 25/01/2012 (3 months)
• Longer-term refinancing operation of 17/01/2012 (1 month)
• Longer-term refinancing operation of 21/12/2011 (3 month)
• Longer-term refinancing operation of 21/12/2011 (3 years)
• Longer-term refinancing operation of 30/11/2011 (3 month)
• Longer-term refinancing operation of 10/26/2011 (12 month)
• Longer-term refinancing operation of 10/08/2011 (6 months)

Fine-tuning operations

The Eurosystem may conduct fine-tuning operations in order to smooth unexpected liquidity fluctuations rapidly.

The operational features are as follows:

• The operations are liquidity-providing or liquidity-absorbing transactions.
• They are carried out on an ad hoc basis.
• Their maturity is not standardised.
• The Eurosystem can limit the number of participating counterparties.
• All assets included in the single framework for eligible assets of the Eurosystem (see Eligible assets in the Eurosystem) are eligible as collateral for fine-tuning reverse operations.

Fine-tuning operations (in German only)

• Fine-tuning operation of 07.02.2012 (7 days)

You can obtain a list of current and historical tender transactions of the Eurosystem by clicking on this link: Money policy operations