The effectiveness of the various instruments depends largely on the structure of the financial market. In Anglo-Saxon countries, liquidity management typically occur through open market operations via the sale or purchase of government securities. This contributes to a correct price-setting mechanism in these markets.
However, in countries where the banking system plays a dominant role and where there is no centralised market for government securities, such as the euro area countries, the injection or restriction of liquidity is done via repurchase agreements with the banks against collateral.