Open market operations

General features

Open market operations are designed to create or absorb liquidity in the banking system. They are conducted on the initiative of the central bank, usually by means of a tender procedure. Based on their purpose and maturity, they can be broken down into:

• main refinancing operations (MROs), with a weekly maturity and frequency, conducted according to a pre-set calendar;
• longer-term refinancing operation (LTROs), with a maturity of three months and a monthly frequency, conducted according to a pre-set calendar;
• fine-tuning operations, aimed at creating or absorbing liquidity on an unspecified maturity basis and for the purpose of smoothing unexpected liquidity and interest rate fluctuations;
• and structural operations, aimed at adjusting the Eurosystem's structural liquidity position vis-à-vis the banking sector.

In response to the financial and economic crises that have occurred since 2007, regular refinancing operations have been accompanied by further refinancing operations, both in euros and in foreign currency, with longer maturities and, in some cases, the aim of directly supporting lending to the real economy, known as targeted longer-term refinancing operations (TLTROs). Of these operations, which can generally be defined as non-conventional refinancing operations, US dollar-denominated operations continue to be conducted on a weekly basis according to a pre-set calendar.

In March 2024, following the review of the operational framework, the Governing Council of the ECB announced that it will continue to provide liquidity through a wide range of instruments, including MROs and LTROs, and, at a later stage, also through structural longer-term refinancing operations and a structural portfolio of securities. The MROs and the three-month LTROs are and will continue to be conducted through fixed-rate tender procedures with full allotment.

Operational communications

In this section, the Bank of Italy publishes a list of operational documents on the implementation of monetary policy and detailed information regarding open market operations, both in euros and in foreign currency, carried out since 2020.

The contracts and operational instructions for participation in euro and foreign currency-denominated operations with the Bank of Italy are available at the bottom of the section entitled 'The implementation of monetary policy and emergency liquidity assistance', under the heading 'Monetary policy instruments - Contracts and Operating guides', at the following links: 'Contracts' (only in Italian) and 'Operating guides' (only in Italian).