Media Release Changes to the Reserve Bank's Dealing Arrangements

With the supply of Commonwealth Government securities falling, the Reserve Bank over the years has widened the range of securities it will accept in its domestic market repurchase agreements. In July 1997 it began to accept securities issued in Australia by the central borrowing authorities of State and Territory governments and in October 2000 it began to accept Australian dollar securities issued by some supranational organisations.

The Bank now has decided to make two further changes to the range of eligible collateral for its domestic repurchase agreements.

(a) State government securities

In addition to securities issued in Australia by the State and Territory central borrowing authorities, the Bank will in future also accept Australian dollar denominated securities issued by these authorities in euro markets and lodged in Austraclear as Euroentitlements.

(b) Securities issued by supranational organisations

The Bank will also be prepared to consider Australian dollar securities from a broader range of major supranational institutions. Decisions will be made on a case-by-case basis, but as a minimum the organisation must have a AAA credit rating.

These changes are intended to increase the range of assets available to the Reserve Bank for liquidity management purposes and they have no implications for the stance of monetary policy. They will become effective from 12 June 2001.


Dr Malcolm Edey
Head of Domestic Markets
Reserve Bank of Australia
SYDNEY (02) 9551 8300