NBP injects money into the economy via lowering bank reserves

On April 4, the National Bank of Poland (NBP) will buy out the remaining part of the bonds issued for banks back in 1999. In exchange, banks will receive over zł. 5.2 billion in cash. Bogusław Grabowski from the Monetary Policy Council (RPP) claims that this will give banks the same amount to use as they see fit. This in turn could increase banks' profits by zł. 300 million. "Freeing money from reserves is very important as banks will be able to use them more efficiently," said Marcin Materna, an analyst with DM Millennium. This will also decrease the obligatory reserve of the banks' reserves held by the NBP to 4.5%. (Parkiet, p. 6) M.M.