Regular open market operation executed by the ECB in the form of a reverse transaction for the purpose of providing liquidity (central bank money) to banks on a recurring basis over a shorter period of time. – The operations are executed by means of weekly standard tenders with a maturity of usually one week – until the beginning of 2004: two weeks – as variable rate tenders with a minimum bid rate announced in advance. They play the key monetary policy role in the Eurosystem. Therefore, the interest rate on the main refinancing operation is also a key interest rate. – Since the end of July 2000, the operations have no longer been conducted as fixed rate tenders but as variable rate tenders in accordance with the U.S. procedure. – See three-year tender, fixed rate tender, low interest rate policy, quantitative easing, refinancing operation, longer-term, tender procedure, transmission mechanism, monetary, variable rate tender, allotment rate, marginal. – See the annex “Euro area statistics,” section “Monetary statistics,” subheading “Monetary policy operations of the Eurosystem (tender procedures)” in the respective ECB Monthly Bulletin for the size of the operations, ECB Monthly Bulletin of July 2000, p. 39, ECB Monthly Bulletin of April 2004, p. 20 ff, ECB Annual Report 2000, p. 67 ff, Monthly Report of the Deutsche Bundesbank of July 2004, p. 58 ff; Monthly Report of the ECB of July 2006, p. 26 ff; Monthly Report of the Deutsche Bundesbank of April 2008, p. 26 (overview of operations 1999 to 2008); Monthly Report of the ECB of August 2009, p. 37 ff (effects of the first longer-term refinancing operation with a one-year maturity).
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