Why RBI’s G-SAP is a masterstroke
The OMO clone will facilitate govt’s big borrowing plan at a lower cost, by bringing certainty to timing & amount of bond buys
In the recent bi-monthly monetary policy announcement, the RBI promoted a new programme the Government Securities Acquisition Program (G-SAP). The initiative is believed to be a counterpart of Open Market Operations (OMOs) the purchase and sale of government securities (G-Secs) by the RBI on behalf of the government to reduce the volatility in the bond market.
Keeping the policy rates unaffected, the RBI continued its commitment to ‘accommodative policy’ stance while announcing the purchase of G-Secs worth ₹1-lakh crore in the first quarter of financial year 2021-22 through the secondary market.
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(L) Tesfaye Hailemichael Stock market expert who used to work at Nasdaq, Henok Assefa Managing Partner of Precise Consult and Melese Minale, Senior Macroeconomic Advisor at NBE (Photo: Anteneh Aklilu)
The National Bank of Ethiopia (NBE) is drafting a directive on Open Market Operations (OMO) and Standing Facilities (SF) to establish a formal and modern interbank money market on the itinerary to capital market.
Since the Home Grown Economic Reform Agenda was introduced about two and half years ago, the government has been putting in place different reforms and introducing new approaches to improve and correct the macroeconomic imbalance whilst commencing new economic paths.
Daily Market Commentary - April 30, 2021 - Bonanza Portfolio equitybulls.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from equitybulls.com Daily Mail and Mail on Sunday newspapers.
Read more about RBI Announces Special Open Market Operations (OMO) Simultaneous Purchase and Sale of Gsecs Of Rs 10000 Crore on Business Standard. Powered by Capital Market - Live News
To pump up liquidity, the Reserve Bank of India will conduct a one-day Open Market Operations on May 6 to simultaneous purchase and sell government securities.The OMO session will see simultaneous purchase and sale of government securities .