RBNZ to accept Kauri bonds as security in OMO

Date: 10 December 2007

The Reserve Bank will expand the range of securities it will accept in its Reverse Repurchase transactions in the Open Market Operation (OMO) to include a limited amount of Supranational, Foreign Sovereign, "Agencies" and Semi-Government issues (Kauris), from 11 December 2007.

Further details regarding the acceptable Kauris and limits can be found on the Eligible securities and haircuts page. It should be noted these limits will apply to both the OMO and Overnight Reverse Repo Facility (i.e. use of the limit in the OMO will reduce the limit available for the ORRF).

Full operational detail for the OMO can also be found on the Operating Rules and Guidelines page.

This change will improve the Reserve Bank's ability to provide liquidity to the banking system and is consistent with other measures taken over the last three months. This change has no implications for monetary policy.

For further information please contact the Domestic Markets team on 472-0074 or 472-0075.