The South African Reserve Bank (SARB) is currently reviewing its operations in the domestic money market and assessing the functioning of the money market in general. In this regard the Reserve Bank has embarked on a series of discussions with participants in the domestic money market in order to obtain their views and ideas on how the Bank’s current refinancing procedures and related issues could be improved upon. The findings of these discussions, including any possible changes which may flow from the discussions, will be summarised in a consultation paper for further comment before any such changes are implemented. Similar consultations with market participants were held in 2000 after which certain adjustments were announced to the Bank’s refinancing procedures in April 2001 and implemented in September of that year. Various changes have occurred since then, which warrant a re-evaluation of existing processes. One such development is the elimination of the Bank’s oversold foreign exchange forward book which had a major impact on money market liquidity in the past. Liquidity conditions in the money market have changed significantly since the closure of this book in February 2004, which is one of the reasons why the current procedures now need to be evaluated again. For further information contact:Roelf du Plooy(012)313-3556 ​