Payments undertaken as part of the asset purchase programme are also settled via TARGET2. APP implementation is distinct from that of refinancing operations because it can entail immediate cross-border payments. Indeed, around 80% of total NCBs’ purchases have been by financial market parties that are not resident in the same country as the purchasing central banks, thereby impacting TARGET balances.
Dealing with the complexities of triadic central banking has been for me both a fascinating professional experience and an intellectual adventure bringing new insights nearly every day. 4. Not only was monetary policy the sole task highlighted when I was a student, but the word “monetary” was overshadowed by the word “policy”.