The QMR is a monetary instrument through which local member banks are allowed to deposit with; and borrow from QCB; overnight funds with a pre-specified initial interest rates and bank-by-bank ceiling. QMR transactions are fully automated between QCB and local bank members in the QMR System. Transactions are executed through SWIFT message system, where the system:
- 1. Announces at the beginning of each monetary–policy–day;
A. Initial interest rate on deposit transactions, QCB rate on deposit (QCBDR).
B. Initial interest rate on loan transactions, QCB rate on loan (QCBLR).
- 2. Dynamically calculates the effective interest rates (QMR Rates) on deposit and loan transactions over the course of the monetary-policy-day as a function of the volume of funds available through the system.
- 3. Provides bank-by-bank ceilings for deposit and loan transactions through the system.
- 4. Automatically executes clearing loan and deposit between QCB and member banks at the end of each monetary-policy-day with a pre-specified ceiling for each bank.
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