Issuance of Central Bank Securities: International Experiences and Guidelines

Abstract

The paper discusses the reasons for central bank (CB) issuance of securities, and reasons for choosing different approaches e.g. in maturities and target market. It provides evidence on the range of different approaches taken by those CBs which do issue, as well as suggesting reasons why some CBs do not; and provides operational guidelines on the major building blocks of the issuance of CB securities.

A Primer on Managing Sovereign Debt-Portfolio Risks

“…In countries with developed financial markets, central bank interventions usually take place in secondary markets, reducing the need for coordination between fiscal and monetary authorities at the operational level (IMF, 1994). In countries with less developed financial systems, central banks start issuing their own securities or use government securities as their intervention instrument for open market operations that are often implemented in the primary market, raising the need for effective coordination on issues such as the tender volume, 154 so as to allow the central bank to issue more securities than is strictly necessary for debt management purposes and decide on mechanisms to bear the cost of overfunding the government's budget (Gray and Pongsaparn, 2015).…”

Stagnation Versus Growth in Europe

“…It's an entirely new concept that solves the issue of fragmentation in this segment and lowers costs and risks [see also Gray and Pongsaparn (2015) and Jobst et al (2012)]. As an example of its aims: suppose a small-medium enterprise (SME) intends to expand its business oversee.…”

Liquidity Management under Fixed Exchange Rate with Open Capital Account

“…For further details on issuance of central bank securities, seeGray and Pongsaparn (2015).©International Monetary Fund. Not for Redistribution…”