Daily auctions increased and cash returns penalised by Reserve Bank
Three new measures are being introduced to keep sufficient cash in circulation amid the Covid-19 pandemic
20 March 2020 - 11:39
UPDATED 20 March 2020 - 14:56
On Friday, the SA Reserve Bank took steps to increase liquidity — the amount of cash available in the money market — by increasing the number of daily auctions for banks and penalising them for returning cash at the end of the day.
The measures arose out of concern that stresses have emerged in various parts of the financial system as the Covid-19 crisis begins to push the cost of lending up and there are signs that companies are increasing the cash on their balance sheets...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.