Offenmarktgeschäften

Offenmarktgeschäfte, or open market operations, are monetary policy operations conducted by a central bank in the open market to influence liquidity conditions and short‑term interest rates. They form a primary instrument for implementing monetary policy and maintaining orderly money markets.

The main instruments are outright purchases and sales of securities, repurchase agreements (Repos) and reverse repurchase agreements (Reverse Repos), and securities lending operations. In a repo, the central bank buys securities with an agreement to sell them back later, providing temporary liquidity; in a reverse repo, it sells securities with an agreement to repurchase later, draining liquidity. Outright transactions permanently change the central bank’s holdings.

Open market operations aim to steer the level of bank reserves and the interbank rate toward the policy target. They are conducted with financial institutions as counterparties and can have maturities ranging from overnight to several weeks or months. The operations influence the central bank’s balance sheet and the overall money supply.

Context and scope: In the Eurosystem, Offenmarktgeschäfte include regular refinancing operations such as main refinancing operations and longer-term refinancing operations, as well as other market-based instruments, to implement the ECB’s policy decisions. They are intended to complement standing facilities and macroprudential tools, supporting the execution of monetary policy and ensuring liquidity in the banking system.

Notes: The term is commonly used in German-speaking central banking contexts; while the concept exists worldwide as open market operations, the specific instruments and naming vary by jurisdiction.