Eesti Pank / Bank of Estonia

Frontpage » Estonian Monetary System » Estonian monetary system in short » Monetary policy instruments
 
Tühik

Monetary policy instruments used in the operational framework of the Estonian monetary policy

 The standing facility of buying/selling foreign currency (forex window) and the reserve requirement for banks are Eesti Pank's main instruments of monetary policy.
 The forex window was created to provide sufficient liquidity of the kroon to banks.
 The reserve requirement for banks was established to regulate the liquidity reserves of the financial system.
 The currency board framework gives a more substantial weight to Estonia's reserve instrument. To some degree, it helps compensate for the lack or limited nature of other instruments.