Liquidity and markets
Information to banks and the market.
Tel. (+47) 22 31 61 60
- The liquidity management system Norges Bank manages bank reserves with a view to keeping the shortest money market rates close to the policy rate. This is carried out through different forms of market operations, which means that the central bank can either supply or withdraw reserves to/from the banking system.
- Market operations Norges Bank uses market operations to steer bank reserves towards a desired level, primarily using F-loans and F-deposits.
- Foreign exchange reserves The foreign exchange reserves are the Bank's contingency funds in international currencies and are to be available for use in foreign exchange market transactions as part of the conduct of monetary policy or with a view to promoting financial stability and to meet Norges Bank's international commitments.
- Norges Bank’s foreign exchange transactions on behalf of the government The Norwegian government receives revenues in both NOK and foreign currency from petroleum activities. Some of these revenues are used to finance a planned central government budget deficit. Norges Bank carries out the necessary foreign exchange transactions associated with petroleum revenue spending. These foreign exchange transactions are planned and smoothed over the year and are pre-announced each month.
- Lender of last resort Norges Bank can provide extraordinary liquidity to the entire banking system or individual banks when access to liquidity from other sources is impaired. The extraordinary liquidity that Norges Bank can provide may prevent financial problems from spreading and thus prevent a broader crisis from arising.