For your information, the Reserve Bank has issued a document which details changes to the Bank's liquidity management regime.
Reform of the Reserve Bank of New Zealand’s Liquidity Management Operations (PDF 283KB)
The document confirms the key proposals for a "cashed-up" system; i.e., ensuring there is enough cash in the financial system to enable participants to settle their payment obligations. The proposals were released for public comment on 17 March 2006.
The document also provides an implementation timetable and operational guide.
As previously indicated, cashing up the payment system is a technical adjustment and there are no monetary policy implications.
For further information contact:
Anthea Black
External Communications Adviser
Ph 04 471 3767, 021 222 5225, [email protected]