When the banking system has a liquidity surplus with the Riksbank, the Riksbank drains liquidity by issuing Riksbank Certificates at an interest rate corresponding to the policy rate.
Riksbank certificates are securities issued by the Riksbank. The certificates have a short maturity, usually seven days, and are issued once a week, normally on Tuesdays.
When the monetary policy counterparties invest in Riksbank Certificates, the Riksbank borrows liquidity from the banking system at an interest rate corresponding to the policy rate. The volume of Riksbank Certificates issued corresponds to the liquidity surplus minus an amount deemed appropriate. The amount can vary between issues and is set in order to reduce the risk that any bank will have a significant liquidity deficit at the end of any day before the maturity of the Riksbank Certificate. To facilitate the banks’ liquidity management, Riksbank Certificates can be resold.
If the counterparties' aggregate demand for Riksbank Certificates is greater than the volume offered, each counterparty will receive a percentage of its bid. This percentage is determined on the basis of the ratio between the volume offered and the volume requested.