On the last banking day of each week, Danmarks Nationalbank conducts open market operations, in which the counterparties may raise monetary-policy loans against collateral and make deposits by purchasing certificates of deposit issued by Danmarks Nationalbank. Normally, loans and deposits have a maturity of seven days. The loans and deposits accrue interest at the lending rate and the certificates of deposit rate, respectively.
With effect from 1 February 2017 Danmarks Nationalbank introduces buy-back and sale of certificates of deposit on a daily basis in order to support a smooth exchange of liquidity. Also the buy-back premium is raised from 0.05 percentage points to 0.10 percentage points. This is to encourage the monetary-policy counterparties to exchange liquidity among themselves.