In order to keep short-term interest rate in the money market in line with the policy interest rate set by the Monetary Policy Committee, the BOT conducts Open Market Operations (OMOs), the most actively used Monetary Policy Instruments.
The BOT supervises and manages the auction of government debt securities in the primary market while it also acts as a registrar and paying agent for both interest and principle of the debt instruments. The BOT has developed the Bangkok Interbank Offered Rate (BIBOR) and the Private Bilateral Repo to widen and deepen the country’s money market. The BOT has also joined hands with the Ministry of Finance and other relevant agencies on debt market development initiatives such as the development of government debt issuance in the primary market, improvement of liquidity and efficiency in the secondary market, and development of settlement infrastructure for debt securities market.
To grant opportunities for the general public to invest in low-risk government debt securities when deposit rates were excessively low, savings bonds have been offered for public subscription at times. These bonds include the Ministry of Finance’s Savings Bonds and The Bank of Thailand’s Savings Bonds.
Interesting issues for media regarding the financial markets:
- BOT Liquidity Management