Open market operations
In order to achieve its monetary policy objectives, the Eurosystem has at its disposal a set of monetary policy instruments. These include liquidity-providing and liquidity-absorbing open market operations which are settled by the Bundesbank, to the extent of its mandate, with counterparties established or resident in Germany.
Regular refinancing and fine-tuning operations
Foreign currency transactions
Pursuant to Eurosystem rules, auctions may be used alongside bilateral transactions as a supplementary procedure for specific market segments under the public sector purchase programme (PSPP). Within this framework, the Bundesbank conducts one multi-ISIN auction covering up to 10 securities on the second Thursday of every month. Advance notice for the auctions is issued on the Friday prior to the relevant auction.
Targeted longer-term refinancing operations
With a view to improving the monetary transmission process and further incentivising bank lending, the Eurosystem has conducted three series of targeted longer-term refinancing operations. Details on aspects of the TLTRO, for example interest rate conditions and voluntary repayment options, can be found by following the link below.
Tender calendar and system
The main and longer-term refinancing operations are conducted in accordance with an indicative calendar published by the Eurosystem. This 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.