Outright Purchase and Sale of Public Sector Debt Securities

Outright Purchase and Sale of Public Sector Debt Securities

To permanently add or drain liquidity, the BOT purchases or sells public sector debt securities with appointed outright counterparties. The BOT typically adds reserves through this channel to accommodate the permanent increase in demand for currency in circulation as the economy grows. Moreover, the BOT could purchase public sector bonds to replenish its portfolio when there are bonds falling due. ​