Monetary Operations And Liquidity Management (MOLM)

Course details

Target Audience: 

Mid-to senior-level officials at central banks.

Qualification:

Participants should be involved in the implementation of monetary policy and in liquidity management, and in money market development.

Language:

The course is conducted in English with simultaneous interpretation into Arabic.

Course Description:

This one-week course, offered by the IMF’s Monetary and Capital Markets Department, explores theways in which a central bank’s monetary olicy is implemented through its operational framework (openmarket operations, standing facilities, reserve requirements), and the ways in hich the operationalframework can support liquidity management (so that unanticipated liquidity shocks do not causeundue volatility) and arket development. Differences between a pro-active approach to liquiditymanagement, and a more passive system, are reviewed.

The course also discusses how central banks have adapted their operational frameworks in the face ofthe global financial crisis and approaches followed o handle pressures arising from the new risks andchallenges in the MENA region. This is to support financial stability and the design of incentive structuresin the financial system that motivates responsiveness to monetary policy signals and financial stability.Furthermore, mock uctions and group discussions in which participants deepen their understandingof monetary instruments through hands-on exercises are ntroduced. Finally, some participants will beasked to make presentations on the operational issues which they are currently facing.