RBI Governor Shaktikanta Das said, "We may have to consider OMO sales."
Why Open Market Operations (OMO) sales are considered tactical at this point? What is OMO? What impact do OMOs have on the economy? How does the money supply change due to OMOs? Why do OMOs impact bond yields and exchange rates?
💸 Find answers to these questions in this video.
Read the transcript and access the Zoom Whiteboard displayed in this video on my blog. Link - https://wp.me/p8aKIW-XW
#RBI #economics #banking #money #liquidity #bondyields #yieldspreads #currency #exchangerate
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⏱️ Time Stamps
00:58: What is OMO? Explained using non-technical example
03:44: OMO detailed explanation through whiteboard
10:59: Introduction to Yield Spreads - Whiteboard
14:45: Connecting theory to reality
18:03: Changes in yield spreads and USD/INR
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📚 Sources and Further References:
Many Faces of OMOs, Tamal Bandyopadhyay - https://tinyurl.com/5n6hn3cn
How RBI's Potential OMO Bond Sale Is A Plan To Hit Three Birds With One Stone, Outlook Business - https://tinyurl.com/nhk67p8r
Open market operation, Wikipedia - https://en.wikipedia.org/wiki/Open_market_operation
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