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Monetary Policy | Monetary Policy Instruments | Open Market Operations

Collateral for Monetary Operations and Risk Management

Type of securities

The NBS performs monetary operations against the collateral of dinar securities (not indexed to a foreign currency) issued by:

  • the National Bank of Serbia;
  • the Republic of Serbia;
  • an international financial organisation and development bank or a financial institution founded by a foreign government, with the credit rating of “AAA” by Standard & Poor’s or Fitch-IBCA , or “Aaa” by Moody’s.

Risk management

To ensure the collection of its receivables, the NBS may apply in its monetary operations an upward/downward haircut to the nominal value of securities subject to a repo transaction, and/or a downward haircut to the nominal value of securities against which banks are approved daily liquidity loans and/or short-term dinar loans.

The upward/downward haircut is determined according to the type of securities and their residual maturity taking into account the market price of securities, i.e. current market and monetary developments.

The downward/upward haircuts are set by the Decision on Determining Upward/Downward Haircut to the Nominal Value of Securities, and equal:


REPO SALE OF SECURITIES
Type of securities Residual maturity in days Upward haircut
NBS T-bills Up to 371 0.00%

REPO PURCHASE OF SECURITIES
DAILY LIQUIDITY LOAN
SHORT-TERM DINAR LOAN
Type of securities Residual maturity in days Downward haircut
NBS T-bills up to 371 18.00%
Discount securities of the Republic of Serbia and international financial organisations and international development banks or financial institutions
up to 371 18.00%
372-731 30.00%

Coupon securities of the Republic of Serbia and international financial organisations and international development banks or financial institutions
up to 371 9.00%
372-731 11.00%
732-1.096 13.00%
over 1.096 20.00%