It is our hope that, in the process, we will encourage counterparties to reduce their reliance on central bank facilities and instead transact more with each other through interbank markets, in order to meet liquidity requirements.
The more immediate benefit of the new auction-type instruments under the IRC is that the price discovery process will be facilitated by the bids we receive from market participants, which will  1  By June 3, all RRPs under the current facility would have matured and all term placements under SDA would have been wound down to give way to the new facilities under the IRC.