The Central Bank uses certificates of deposit (CDs) and repurchase agreements (REPOs) to support the reserve requirement instrument. The interest rate on CDs is determined by the market participants in biweekly tenders. However, the CD rate is bound to a maximum, equal to the US dollar libid rate of an equal term plus a number of basis points. The Central Bank initiates open-market operations through buying or selling government securities whenever monetary developments warrant such an action.
The rationale behind this policy is a further flexibilization of the monetary policy.