THE ROLE OF OPEN MARKET OPERATIONS IN ENSURING BANKING SYSTEM STABILITY

Authors

  • Khudoyberdiyev Jonibek Sadriddin ugli Monetary Regulation of the Economy, 1st Year Master’s Student The Banking and Finance Academy of the Republic of Uzbekistan

Keywords:

open market operations, banking system stability, central bank instruments, monetary policy, repo operations, interbank money market, Uzbekistan, financial stability.

Abstract

The stability of the banking system is a key prerequisite for sustainable economic growth, effective monetary policy transmission and confidence in financial institutions. In modern central banking, open market operations are among the most important market-based instruments used to regulate banking sector liquidity, guide short-term interest rates and support the smooth functioning of payment and credit markets. This article examines the role of open market operations in ensuring banking system stability, with particular attention to the institutional context of Uzbekistan. The study analyzes repo and reverse repo operations, outright securities transactions, central bank bills, collateral mechanisms and the transmission of policy-rate decisions to the interbank money market.

References

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Bank for International Settlements. (2023). Monetary Policy Operating Frameworks and Central Bank Balance Sheets. Basel: BIS.

Bindseil, U. (2014). Monetary Policy Operations and the Financial System. Oxford University Press.

Central Bank of the Republic of Uzbekistan. Monetary policy guidelines and official monetary policy materials. Tashkent: CBU.

Friedman, M. (1968). The Role of Monetary Policy. American Economic Review, 58(1), 1-17.

International Monetary Fund. (2025). Republic of Uzbekistan: Article IV Consultation and Financial Sector Assessment Materials. Washington, D.C.: IMF.

Mishkin, F. S. (2019). The Economics of Money, Banking and Financial Markets. Pearson.

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Published

2026-05-31

How to Cite

Khudoyberdiyev Jonibek Sadriddin ugli. (2026). THE ROLE OF OPEN MARKET OPERATIONS IN ENSURING BANKING SYSTEM STABILITY. INTERNATIONAL JOURNAL OF SOCIAL SCIENCE & INTERDISCIPLINARY RESEARCH ISSN: 2277-3630 Impact Factor: 8.036, 13(05), 21–24. Retrieved from https://www.gejournal.net/index.php/IJSSIR/article/view/2928

Issue

Vol. 13 No. 05 (2026): INTERNATIONAL JOURNAL OF SOCIAL SCIENCE & INTERDISCIPLINARY RESEARCH

Section

Articles

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