Monetary Operations - Overnight RRP Facility​​

​Monetary Operations under the Interest Rate Corridor Framework​​

Overnight RRP Facility​

In a repurchase transaction, the BSP buys government securities (GS) from a bank with a commitment to sell them back at a specified future date at a predetermined rate, resulting in an expansionary effect on liquidity. Conversely, in a reverse repurchase (RRP) operation, the BSP also acts as the seller of GS and the bank’s payment to the BSP has a contractionary effect on liquidity.

The existing RRP facility is an overnight facility and will be offered using a fixed-rate and full-allotment method, where individual bidders are awarded a portion of the total offer depending on their bid size. Fixed-rate, full allotment method will help ensure that the overnight rate sits close to the BSP policy rate.

The table below presents the features of the O/N RRP facility.

Feature​ Details​
​Frequency of operations​Daily (5 days a week)
​Auction type
​Fixed-rate, full allotment
​Auction size
​Based on BSP liquidity forecast
​Announcement of auction size
​Auction time
5:00 PM (Open); participants can start submitting bids at 4:30 PM​
​Auction time window
30 minutes​
​Eligible counterparties
Banks and NBQBs​
​Type of allocation
​Pro rate based on bid size
​Minimum bid amount
​P10 million
​Maximum bid amount
​20% of auction size
​Maximum no. of bids
​One (1)
​Announcement of results/settlements
​Same day

Auction Schedule
​ ​

Created:6/17/2020 3:21 PM   by:  Pambid Frederick D.
Modified:7/7/2022 3:47 PM   by:  Pambid Frederick D.