Weekly repo auction ends on October 30 as liquidity stays ample
Weekly main repo auctions will stop indefinitely from October 30, 2026, the South African Reserve Bank (SARB) said on October 12. Repos will remain available as a discretionary liquidity backstop.
From R56 billion to suspension
The SARB will suspend its weekly main repo auction because the market has sufficient liquidity and no longer needs additional support.
Under its former classical cash reserve system, weekly auctions provided R56 billion to refinance the market's liquidity shortfall.
The SARB retained the auctions at progressively lower levels after moving to a surplus framework, funding shortfalls and supporting quota allocation during the transition.
It continued offering repos afterward to ensure sufficient liquidity without supplying more than the market needed or could absorb.
Repo uptake has been minimal or absent for a considerable period.
The SARB now implements monetary policy through a tiered-floor system.
Quotas without routine repo funding
The SARB identified a risk that repos in a surplus framework might weaken quotas by allowing banks to borrow from it instead of sourcing interbank liquidity.
That risk has not materialised, but the suspension aims to protect the framework across market conditions.
The SARB seeks simple, transparent implementation that can respond to liquidity changes, shocks and market structures.
Repos remain available at its discretion, including during market dysfunction.
Banks are urged to test regularly with the SARB to maintain operational readiness.
Routine ends, backstop remains
The suspension removes an auction that no longer supplies meaningful liquidity, rather than eliminating repo support.
Its stated purpose is to preserve quota incentives and simplify implementation.
Regular testing remains necessary because discretionary repos stay in the liquidity toolkit.