On the use of sterilisation bonds in emerging Asia

Arbeitspapier

We document recent developments in the use of sterilisation bonds by six central banks in emerging Asia, and discuss the implications for monetary policy and the financial sector. An important development in the sterilisation of foreign exchange interventions in past years has been the frequent use of central banks' own paper. There has been an attempt to lengthen the maturity structure of sterilisation bills, and maturities have risen, especially in 2010-11. The choice of sterilisation instrument is likely to depend partly on their relative costs. In particular, as the yield on central bank securities has fallen relative to the rate of remuneration of required reserves, some central banks in Asia have increasingly used central bank securities for sterilisation.

Object Details

• ISBN: 978-952-462-763-4
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: BOFIT Discussion Papers ; No. 1/2013

Classification and Topics

• Classification: Wirtschaft ; Interest Rates: Determination, Term Structure, and Effects ; Monetary Policy, Central Banking, and the Supply of Money and Credit: General ; Monetary Policy ; Central Banks and Their Policies
• Subject: sterilisation bond ; central bank bonds and bills ; foreign exchange reserves ; emerging Asia

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Mehrotra, Aaron
• Event: Veröffentlichung
• (who): Bank of Finland, Institute for Economies in Transition (BOFIT)
• (where): Helsinki
• (when): 2013

Further information

• Handle: http://hdl.handle.net/10419/212756
• Last update: 10.03.2025, 11:44 AM CET