banking

Economic situation: Bank liquidity needs down in February 2021

April 14, 2021

TAP)-The banking liquidity needs dropped in February 2021 to 8361 MD, compared to 8620 MD the previous month and 10 757 MD a year earlier, according to a note on economic and monetary indicators/April 2021, released by the Central Bank of Tunisia.

This relative easing was mainly due to the expansive effect exerted by the Circulating Notes and Coins (return of 365 MD of notes to the banking system).

Thus, the overall volume of refinancing fell from 8 718 MD in January 2021, to 8 404 MD in February 2021.

The interventions of the Central Bank on the money market stood, on average, at 8198 MD in February 2021, compared to 8258 MD in January, owing to the decrease of liquidity injection operations (36 MD against 232 MD in January 2021) and outright purchases of Treasury bills (3146 MD against 3215 MD).

On the other hand, the main refinancing operations recorded a monthly increase of 100 MD in February 2021, to 4061 MD.

Likewise, the 1-month refinancing operations grew to 763 MD in February 2021, against 658 MD last January.

Besides, the banks' recourse to the 24-hour loan facility decreased to 496 MD in February 2021, after having reached 661 MD the previous month.

The average interest rate of the money market (TMM) recorded in February 2021 a rise of 8 basis points compared to the previous month, to settle at 6.23%.

As a result, it came close to the key rate which is 6.25%.

The weighted average rate (WAR) of the main refinancing operations (MROs) also increased by 2 basis points compared to the previous month, to stand at 6.30% in February 2021.

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