To facilitate the flow of credit to cashconstrained businesses and individuals, the SARB injected liquidity in money markets through larger and more frequent repo operations. It also temporarily relaxed some regulatory capital requirements for banks. Finally, the SARB purchased government bonds in the secondary market to ensure liquidity and the smooth functioning of the bond market.
Ten years ago, the Bank only dealt in Commonwealth Government securities, but in response to the diminished supply of these securities and in recognition of growing markets in other securities, the Bank over the years has added semi-government securities, bonds issued by international organisations and Australian bank bills to the list of securities in which it is prepared to deal.