Money Mkt - Key Info
Key Market Information
Money Mkt - Monetary Ops
Monetary Policy Operations in the Money Market
Monetary policy operations are wholesale and interbank market transactions undertaken by the Bank to manage liquidity in the financial system, by absorbing or adding liquidity via various types of instruments to achieve its operating target -- the average overnight interbank rate (AOIR).
The primary objective is to ensure the AOIR remains within the corridor of the Overnight Policy Rate (OPR) as set out by the Monetary Policy Committee (MPC) while ensuring the efficient functioning of the conventional and Islamic interbank money market.
The Bank’s counterparties for monetary operations comprise the approved interbank institutions in the domestic interbank market. All approved interbank participants are able to participate directly in monetary operations conducted by the Bank, including standing facilities. However, participation in Bank Negara Monetary Notes (BNMNs) auctions is only via appointed Principle Dealers (PDs).
Monetary operations with all interbank participants are conducted daily through electronic auctions on the web-based Fully Automated System for Issuing/Tendering (FAST). The auctions can be undertaken in various forms: competitive variable rates, competitive single rate or non-competitive forms. All auction invitations and auction results are published on the FAST website (fast.bnm.gov.my). The Bank may also conduct bilateral operations with financial institutions or intervene through agent banks or via money brokers.