Effective Monday, July 15, 2024, dealer limits for Overnight Repo (OR) operations will increase to $3 billion for each eligible participant from the previous $1 billion. At the same time, the maximum aggregate cash value amount offered in each auction will increase to $8 billion from the previous $5 billion. The Bank is implementing these changes to maintain the effectiveness of the ORs, in view of the structural changes in the overnight funding market after the industry-wide transition to T+1 settlement. The transition has led to a significant increase in CORRA-eligible repo volumes.
All other terms and conditions for ORs remain the same. The Overnight Repo operation is a regular tool in the Bank’s standard operating framework that is used to reinforce the Bank’s target for the overnight rate. The Bank monitors conditions in the overnight funding market on an ongoing basis and conducts ORs as needed to support the effective implementation of monetary policy.
Director
Financial Markets Department
Director
Financial Markets Department
Assistant Director
Financial Markets Department
Source(s):
Overnight repo operations