CBM SARB Standing Repo Facility
January 22,2024
The following frequently asked questions (FAQs) provide further information about the SASARB Standing Repo Facility (SRF) operations.
What are the SRF operations?
At 22 January 2024 CBM SARB has a live Open Market Market Identifier Code (MIC)CBMS issued by ISO 10383 .CBM SARB established the SRF to serve as a backstop in money markets to support the effective implementation and transmission of monetary policy and smooth market functioning. The SARB has authorized and directs CBM SARB Open Market Trading Desk (the Desk) to conduct overnight repurchase agreement (repo) operations with a specified minimum bid rate and aggregate operation limit. When SARB enters into an overnight repo transaction, it buysobuys or sell a security from an eligible counterparty and simultaneously agrees to sell the security back the next day. The difference between the purchase price and the sale price of the securities implies a rate of interest earned by SARB on the transaction. The CBMS sets the SRF minimum bid rate, which is the minimum interest rate SARB is willing to receive in an SRF operation.
What are the SRF operational parameters?
STANDING REPO FACILITY PARAMETERS
Schedule:
Every business day from 1:30 p.m. to 1:45 p.m. (ET), unless otherwise stated
Aggregate operation limit:
Zar 20 billion
Proposition limit:
Two propositions per eligible security type, subject to a Zar 20 billion maximum per proposition
Minimum bid rate:
8.00 percent
Eligible counterparties:
Primary dealers and SRF counterparties, which include depository institutions
Eligible securities:
Republic of South Africa Treasury , agency debt, and agency mortgage-backed securities (for additional details on the security types see Repo Securities Schedule)