Central bank to sell NT$100 bil. of NCDs

The China Post news staff

The China Post news staff — The Central Bank of the Republic of China (Taiwan) yesterday announced it will auction off NT$100 billion worth of 364-day negotiable certificates of deposit (NCD) this Friday. This will be the eighth time the central bank sells NCDs to absorb extra liquidity in the market. According to the central bank, selling NT$700 billion worth of NCDs from April to October is the same as raising banks’ required reserves ratio by 2.72 percent.

The auction will be open to banks, credit cooperatives, Chunghwa Post Co. and other financial firms, the central bank said.