In December, the RBI had for the first time ever conducted a special OMO, similar to the 'Operation Twist' carried out in the US around the start of the last decade. A conventional 'Operation Twist' involves a central bank buying and selling securities of the same amounts.
This will be the first time the RBI will be buying and selling securities of the same amount.
Operation Twist involves a central bank simultaneously buying long-dated securities, while selling short-term securities. The objective is the management of the yield curve.
Other central banks, besides the US Federal Reserve, have used similar measures. A conventional such operation involves a central bank buying and selling securities of the same amounts.
After banks in the country showed reluctance about transmitting the lower RBI rates, the central bank decided to undertake its own version of 'Operation Twist' to bring down 10-year yields of government securities (G-Secs) and push monetary transmission.
In the first tranche, the central bank purchased securities worth Rs 10,000 crore and sold bonds worth Rs 6,825 crore.
Later, in the second special open market operation (OMO), the RBI bought Rs 10,000 crore of long-term government securities and sold Rs 8,501 crore of three short-term bonds.
"On a review of the current liquidity and market situation and a ssessment of the evolving financial conditions, the Reserve Bank has decided to conduct simultaneous purchase and sale of government securities under Open Market Operations (OMO) for Rs 10,000 crore each on January 6, 2020," an RBI statement said.
The results of the auction will be announced on January 7, the RBI said.
The central bank also said it reserves the right to accept or reject any or all of the bids or offers either wholly or partially without assigning any reasons.
With banks passing on only a small part of rate cuts, RBI has been forced to think of unconventional ways to lower rates.
With the benchmark 10-year G-Sec yield at an elevated level for quite some time, despite a series of rate cuts by the central bank, economists believe this special move could help transmission of rates in the economy.
(IANS)
In a study, published in the City and Environment Interaction journal, experts from the University of Surrey (UK) said that preventing airborne transmission of Covid-19 should be the next front of the battle against the virus.
The World Health Organisation (WHO) had declared the infectious spread of SARS-CoV-2 (severe acute respiratory syndrome coronavirus 2) a pandemic after its initial outbreak in Wuhan (China). "These past months, living through the Covid-19 crisis, has been truly unprecedented, but we must turn this global tragedy into an opportunity to better prepare for similar threats," said study author Prashant Kumar, Professor at the University of Surrey.
Improved indoor ventilation is an important step that can be taken to reduce the risk of infection.
"However, more must be done to recognise and understand the airborne transmission of Covid-19 and similar viruses, to minimise the build-up of virus-laden air in places typically containing high densities of people," Kumar added.
According to the researchers, Covid-19, like many viruses, is less than 100 mn in size but expiratory droplets (from people who have coughed or sneezed) contain water, salts and other organic material, along with the virus itself.
Experts have noted that as the water content from the droplets evaporates, the microscopic matter becomes small and light enough to stay suspended in the air and overtime the concentration of the virus will build-up, increasing the risk of infection - particularly if the air is stagnant like in many indoor environments.
The study highlights improving building ventilation as a possible route to tackling indoor transmission of Covid-19. "We discuss the need to acknowledge the airborne spread of COVID-19 inside built spaces under eased movement restrictions and the potential steps that can be taken to control it," the study authors wrote.
As of Friday morning, the overall number of global coronavirus cases has topped 5.8 million, while the deaths have increased to more than 360,000, according to Johns Hopkins University.
(IANS)
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