Majority of central banks have power to issue debt for monetary purposes

Central banks pointed to draining liquidity as a reason for issuing debt

Sovereign debt can be issued by either central banks or governments. Many central banks use short-term debt issuance as a tool for open market operations.

When central banks issue securities, they have a direct impact on bank reserves, market liquidity and the sovereign yield curve. Emerging market economies may face the added challenge of operating in relatively undeveloped markets, where small changes in liquidity can have a big impact.

Central Banking found that while the vast majority of

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