In particular, we seek to revert to a situation in which the one-week main refinancing operation is the main tool for steering money market rates and we act as “rate-takers” in the longer-term money market. In addition, under normal circumstances, central banks also do not provide liquidity in foreign currency.
This does not mean, however, that contingency or emergency measures to be activated under extraordinary conditions cannot remain in place. Finally, the use of using self-originated paper as central bank collateral should be considered as an anomaly under normal market conditions. How?