Central Bank Monetary Operations
On Friday, 12 May 2006, the Central Bank of Malta conducted a seven-day term deposit auction, absorbing a total of Lm76.6 million, Lm12.5 million more than the Lm64.1 million that matured on the same day. The rate resulting from the auction was 3.20 per cent, being the floor of the interest rate band (3.20-3.25 per cent) at which the Bank is currently conducting its term deposit auctions.
The net absorption of funds was in response to an increase in liquidity in the banking system in the week under review. Credit institutions started the week with a surplus in the reserve deposit requirement. Other liquidity-inducing factors included the sale of Treasury bills in the secondary market totalling Lm8 million, direct credits of Lm1.4 million relating to invalidity pensions and a Lm1.4 million contraction in currency in circulation. The liquidity surplus was partially offset by a negative clearing of cheques of Lm6.4 million and the purchase of foreign currency by credit institutions worth Lm2.2 million.
Interbank market
Interbank activity declined to Lm5.7 million during the week under review, in comparison with Lm7.1 million transacted in the previous week. Five deals were effected, all in the overnight tenor, at a weighted average interest rate of 2.93 per cent. This represented a decrease of 7.5 basis points from the rate at which similar deals were struck in the previous week.
Treasury bill market
In the primary market for Treasury bills, the Treasury invited tenders for 182-day bills maturing on 10 November 2006. From the Lm21.8 million worth of bids submitted, tenders for Lm6.5 million were accepted by the Treasury. Since Lm6.2 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by Lm0.3 million, from Lm176.8 million to Lm177.1 million.
The latest six-month rate resulting from the week’s Treasury bill auction was 3.2651 per cent, an increase of 3.9 basis points from the rate on 182-day bills issued on 9 February 2006. This latest rate reflected a bid price of Lm98.3980 per Lm100 nominal.
On Tuesday, the Treasury invited tenders for 91-day bills maturing on 18 August 2006. In the following week the Treasury will again accept bids for 91-day bills maturing on 25 August 2006.
Turnover in the secondary market for Treasury bills increased to Lm8.2 million during the week, from the Lm4.6 million recorded in the previous week. All trading was effected by the Bank in its role of market-maker.
Vodafone customers updated on all Eurovision news
Vodafone Malta is offering all customers detailed news and gossip about the Eurovision Song Contest through SMS and Vodafone live! services. Vodafone customers can access this premium service by sending a blank SMS on 5090 2060 or by accessing the Vodafone live service through their handsets.
The SMS service is updated daily with news and information about Malta’s entry as well as other Eurovision contestants. During the weekend there will be three updates daily. SMS news updates cost 5 cents per SMS.
The Vodafone live! service includes a daily picture and news and information on both Malta and other Eurovision contestants. This service costs 5c for the daily service and 25c for a week. These costs do not include browsing.
“Vodafone’s infotainment services have always given customers access to a wide range of events. The Eurovision Song Contest, which will be held in Greece on 20th May, has a large following in Malta and with this service, Vodafone customers will receive updates on Malta and other Eurovision contestants, including latest news and gossip,” said Heathcliff Farrugia, Consumer Segment Marketing Executive at Vodafone Malta Ltd.
Further details are available by calling Vodafone Customer Service on 247 from a Vodafone connection or on 2148 2820 from any other phone.