April 21 (SeeNews) - Turkey's central bank said it is introducing new measures aimed at maintaining market depth, as well as strengthening the monetary policy transmission mechanism and supporting the primary dealership system amidst the coronavirus crisis.
Under the latest measures, the maximum limit for the ratio of the open market operations (OMO) portfolio nominal size to the central bank analytical balance sheet total assets has been increased to 10% from 5%, the central bank said in a statement on Friday.
The bank has also revised the facility offered to primary dealer (PD) banks to sell government securities. The limits offered to PD banks for outright sales of government securities to the central bank will be applied independently of the repo transaction limits and the banks will be offered a selling limit that is equal to the repo transaction limits.
In addition, the related purchases will be limited to 10% and carried out using the quantity auction method. The central bank will determine the amount and type of securities to be purchased.