During the consultation period for the reformed MPIF, the SARB raised the possibility that National Treasury would draw down its Sterilisation Reserve Deposits at the SARB, and that this would affect market liquidity. National Treasury has now indicated that these deposits will be drawn down during February and March 2023. The SARB has developed a plan for managing this change, to avoid market disruptions or any weakening of monetary policy transmission. This plan includes an expansion of market liquidity, from about R50 billion currently to around R80 billion, matched by an expansion of banks’ quotas. These changes will be made in three steps of R10 billion each, the first of which is scheduled for 8 March 2023, the second for 23 March 2023 and the third for 6 April 2023. This Notice specifies banks’ new quotas at each stage of this process.