eAustralian Department of Finance
Day 893, 23:33
•
Published in Australia 
•
by
•
by Reserve Bank of Australia
Money Market
The eAustralian Government use the Reserve Bank of Australia (RBA) as its primary banking facility to manage the financing of its various activities and to regulate the Money Market in terms of AUD buying/selling.
The RBA applies a "peg" system on the AUD. Currently this is set at 1 AUD = 0.02 gold. This may vary from time to time. The RBA will maintain AUD offers at 0.02 g and gold offers up to 52.6 AUD. The RBA gold offer may increase or decrease the trading margin depending upon conditions.
The RBA may also move the peg level if trading moves higher or lower. Notice will not be given of any such moves but announcements will be made if a new peg level becomes the new preferred trading level.
Wholesale Market for AUD
The RBA is considering selling AUD by wholesale to supplement its money market activity. The intended approach would be to sell parcels of AUD and to operate a tender for buyers of AUD. The tender would be advertised, potential buyers would send a confidential bid to the RBA, together with a deposit. Tenders would close and succesful bidder would be notified and given a short period to pay the balance of gold, in order to erecive the parcel of AUD.
Why would tenderers want to do this ? At the current market, a citizen with 5 gold who wants to can go and buy 250 AUD at the peg rate. Under the tender arrangement, a parcel of 250AUD may sell in the range of 4.75 -4.9 gold depending upon how much demand there is.
Why would the government do this ? The idea of wholesaling outside of the money market is simply to sell larger volumes with less effort. The price is slightly lower but this is offset by selling volume.
It is planned to provide separate tenders for both a small and large buyer market. In the small market, parcel size will be 250 AUD (to fit in with typical 5 gold awards). The large market may vary but typical parcel size is 2,000 AUD which will cater for large business owners and money traders.
Venja
Minister of Finance
eAustralia
The eAustralian Government use the Reserve Bank of Australia (RBA) as its primary banking facility to manage the financing of its various activities and to regulate the Money Market in terms of AUD buying/selling.
The RBA applies a "peg" system on the AUD. Currently this is set at 1 AUD = 0.02 gold. This may vary from time to time. The RBA will maintain AUD offers at 0.02 g and gold offers up to 52.6 AUD. The RBA gold offer may increase or decrease the trading margin depending upon conditions.
The RBA may also move the peg level if trading moves higher or lower. Notice will not be given of any such moves but announcements will be made if a new peg level becomes the new preferred trading level.
Wholesale Market for AUD
The RBA is considering selling AUD by wholesale to supplement its money market activity. The intended approach would be to sell parcels of AUD and to operate a tender for buyers of AUD. The tender would be advertised, potential buyers would send a confidential bid to the RBA, together with a deposit. Tenders would close and succesful bidder would be notified and given a short period to pay the balance of gold, in order to erecive the parcel of AUD.
Why would tenderers want to do this ? At the current market, a citizen with 5 gold who wants to can go and buy 250 AUD at the peg rate. Under the tender arrangement, a parcel of 250AUD may sell in the range of 4.75 -4.9 gold depending upon how much demand there is.
Why would the government do this ? The idea of wholesaling outside of the money market is simply to sell larger volumes with less effort. The price is slightly lower but this is offset by selling volume.
It is planned to provide separate tenders for both a small and large buyer market. In the small market, parcel size will be 250 AUD (to fit in with typical 5 gold awards). The large market may vary but typical parcel size is 2,000 AUD which will cater for large business owners and money traders.
Venja
Minister of Finance
eAustralia
Facebook
Twitter
Discord
Comments
nice
Voted.
passing off paper for gold hey?