Changes to the South African Reserve Bank’s monetary policy operational procedures. Pretoria, Wednesday, 22 February 2012 The South African Reserve Bank (Bank) assesses its monetary policy operational framework on a regular basis for effectiveness and efficiency and changes are effected if deemed necessary. On 27 January 2012, the Bank, as part of its consultation process with market participants, published an implementation paper on the changes to its monetary policy procedures titled, “An implementation paper on the changes to the monetary policy operational procedures of the South African Reserve Bank”.[1] The consultation process has been completed, and with effect from 1 March 2012, the following changes to the Bank’s monetary policy procedures will be implemented: 1.        The Bank will allocate the amounts tendered by banks in the weekly main repo auctions on a pro rata basis, up to the announced average daily liquidity requirement for the week in instances where the auction is over-subscribed. 2.        The Bank will conduct two- and five-day main repurchase transactions during the week of the Monetary Policy Committee (MPC) meetings. The first auction will be conducted on Wednesday to mature on Friday, following the MPC announcement. The second “auction” will be conducted on Friday for five days, with the same banks at the same pre-allocated amounts at the new or prevailing rate, and will mature the following Wednesday. Thereafter the main repo operations will revert to the normal seven day cycle. 3.        The Bank will issue SARB debentures and reverse repos with seven- and fourteen-day maturities, in addition to the existing 28- and 56 day maturities. The Operational Notice (which includes the terms of issuance of SARB debentures) guiding the Bank’s money-market operations has been updated to reflect the changes to the Bank’s market operations and is published on the Bank’s website[2]. The refinements mentioned above are operational in nature and do not in any way reflect a change in the monetary policy stance of the Bank.  EnquiriesMr Callie Hugo                                            Tel no.: +27 12 313-4755                          e-mail: callie.hugo@resbank.co.za         [1]Available at:http://www.resbank.co.za/MonetaryPolicy/MonetaryPolicyOperations/MarketOperations/DomesticMarket/ComMarketParticipants/Pages/Modifications-to-the-Money-Market-Operations.aspx [2]Available at:http://www.resbank.co.za/MonetaryPolicy/MonetaryPolicyOperations/MarketOperations/DomesticMarket/Pages/Operational-Notice.aspx  ​