Weekly market operations
The Riksbank conducts weekly market operations with the aim of supplying or draining liquidity from the banking system. Market operations are carried out at the policy rate to stabilise the overnight interest rate in the market sufficiently close to this level. The overnight rate in turn forms an anchor for interest rate setting at longer maturities.
The Riksbank makes regular forecasts for the banking system's liquidity position toward the Riksbank. The weekly market operations are carried out in different ways depending on whether the banking system has a liquidity surplus or a liquidity deficit with the Riksbank. When the banking system has a surplus, the Riksbank drains liquidity by issuing Riksbank Certificates at an interest rate corresponding to the policy rate. This is how market operations are currently conducted. If the banking system instead had a liquidity deficit towards the Riksbank, the Riksbank would offer to supply liquidity via weekly repo transactions or credit against collateral.
It is the Riksbank’s monetary policy counterparties who are given the opportunity to participate in the weekly market operations.