MONETARY MARKET OPERATIONS INITIATED BY THE NATIONAL BANK OF ROMANIA IN 2015-2020

Abstract

In order to achieve the main objective of the European Central Bank and implicitly of the national central banks that make up the European System of Central Banks, the Governing Council of the ECB bases its decisions on a two-pillar monetary policy strategy and implements them both through ordinary monetary policy, as well as through unconventional measures. Monetary policy is the set of actions by which monetary authorities monitor and regulate the amount of currency in circulation, the level of interest rates, exchange rates and other economic and monetary indicators in order to achieve the general objectives of economic policy. The main monetary policy instruments used to achieve the objectives are market operations, permanent facilitation and the establishment of minimum required reserves.

Keywords

• monetary policy
• repo operations
• liquidity