Riksbank Certificates are securities with short maturities issued by the Riksbank for the purpose of absorbing surplus liquidity from the banking system when necessary. The Riksbank's monetary policy counterparties are thus given the opportunity to invest their surpluses in securities issued by the Riksbank.
Once a week, normally on Tuesdays, the Riksbank issues Riksbank Certificates at an interest rate that is the same as the repo rate. The volume of issues corresponds to the banking system’s liquidity surplus towards the Riksbank minus the amount deemed appropriate at each issue. This amount is intended to reduce the risk that some banks will have a significant liquidity deficit at the end of any day during the term of validity of the Riksbank Certificate. In addition, to facilitate liquidity management by the banks, Riksbank Certificates can be resold.
If the demanded volume of Certificates is greater than that being offered, each counterparty receives a percentage of its bid, calculated according to the ratio between the volume offered and the volume demanded.
If the banking system were to have a liquidity deficit towards the Riksbank, the Riksbank would offer to supply liquidity via weekly repos or credit against collateral, instead of withdrawing liquidity via Riksbank Certificates.