The Reserve Bank of New Zealand (RBNZ) disclosed its decision of utilizing more instruments to increase the liquidity of business sector and to aid market activities in order to minimize disruptions brought by the novel coronavirus.
RBNZ released pronouncement which implements Open Market Operation (OMO). Implementation of such will be every Tuesday and is expected to provide liquidity as an exchange for eligible corporate and asset-linked securities.
This will provide an estimated NZ$500 million, equivalent to $300 million dollars, which will last for three months as the scheme is expected to take effect on March 31st. In line with this, the bank also promised to buy government bonds as another measure to manage liquidity, also effective at the end of March.