Tools for Implementing Monetary Policy
One of the Market Operations Department's main functions is to implement monetary policy. The Bank of Israel has several tools which it uses so that the rate of interest in the economy will accord with that set by the Monetary Committee
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Assets recognized as collateral
Assets recognized as collateral for monetary loans and for intraday credit in the Zahav system... More about Assets recognized as collateral …

Makam (central bank bills)

 
Central bank bills, (known as makam, their Hebrew acronym) are short term securities issued by the Bank of Israel. Makam serve as one of the Bank's monetary tools. Makam, which are issued for various terms up to one year, are unindexed and bear no coupon interest. They are sold and traded at a discount to their par value. Makam are issued to the public via auction.
 
Announcement Results Current Contracts Future Issuance ​​​
 
 

Monetary deposits

 
  The Bank of Israel accepts shekel deposits from banking corporations under section 36(b) of the Bank of Israel Law, 5770–2010. Deposits are accepted through auctions for terms of one day, one week, or one month, as needed. The Bank of Israel also makes a deposit window available to banking corporations for shekel deposits.

Daily Deposit Weekly Deposit Monthly Deposit
 
 

Monetary loans

 

The Bank of Israel provides monetary loans to banking corporations under section 36(b) of the Bank of Israel Law, 5770–2010. Monetary loans are offered through auctions for periods of one day or one week, as needed. The Bank of Israel also makes a credit window available to banking corporations for monetary loans.

The loans are provided against collateral as defined by the Bank of Israel.

 

Daily Loan Weekly Loan   
 
 

Repo auctions

 

A repurchase agreement (repo) is offered via discriminatory auction. In a reverse repo, the Bank of Israel buys tradable government bonds and makam, and sells them back at the end of the transaction term. The selling price is based on the purchase price plus interest.
Repo auctions are open to banking corporations and other supervised entities such as provident funds, insurance companies, pension funds, and mutual funds.
Since October 2009, in light of large liquidity surpluses which built up in the system, Bank of Israel repo auctions have been halted until further notice.  

Historical Data