Reserve Bank steps up liquidity measures
Additional measures to be implemented to add liquidity to the financial system
The SA Reserve Bank on Wednesday announced additional measures to add liquidity to the financial system, including a further expansion of refinancing operations and a programme to buy government securities in the secondary market.
As the Covid-19 global pandemic impacts on SA, investors and companies have been dumping investments like government bonds in favour of cash, creating a liquidity squeeze in parts of the system. The cost of government borrowing has also rocketed in the last two weeks with yields spiking, with moves accelerating as sellers struggled to find buyers...