22 AUGUST 2001
Central Bank Monetary Operations
This injection was mainly the result of two factors: the repayment of maturing repos of Lm22 million (previously injected on the 3 August) and a net shortage in the reserve deposit accounts which the banks are legally bound to hold with the Central Bank. The "reserve requirement" is equivalent to five per cent (5%) of their deposit liabilities. The reserve requirement increased as a result of an increase in the deposits with the commercial banks During the period reviewed, the banking system made use of both the Marginal Lending Facility and the Overnight Deposit Facility to the amount of Lm2.3 million and Lm3.8 million respectively.
Malta Government Treasury Bills
At 5.0900%, the weighted average rate for the 91-day bills dropped marginally on the previous level of 5.0998%. The current yield corresponds to a weighted average bid price of Lm98.7469 per Lm100 nominal.
On Tuesday 21 August, the Treasury received applications for the tender of 91-day Treasury Bills maturing on 23 November 2001. These bills will be issued on Friday 24 August, coinciding with a same day maturing amount of Lm4.61 million. For the following week, on Tuesday 28 August, the Treasury will receive applications for 28-day and 91-day bills to be issued on Friday 31 August to mature on 28 September and 30 November 2001 respectively.
Turnover in the secondary market for Treasury Bills amounted to Lm0.07
million, compared to the Lm6.57 million of the previous week. All trading
was conducted with the Central Bank in its role as market maker.