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STOCKHOLM, Feb 19 (Reuters) - Sweden's Riksbank said on Thursday it is taking measures to make it easier for banks to plan their day-to-day liquidity management at a time when the central bank reduces its holdings of Swedish securities.
The central bank said in a statement it is increasing transparency around banks' resale of Riksbank certificates, and will begin publishing information on the longer-term development of the liquidity surplus in the system.
"These two measures provide a better basis for banks' liquidity planning and are one of several forthcoming steps the Riksbank is taking to facilitate banks' adjustment to an environment with a smaller liquidity surplus," it said.
The reduction in liquidity stems from the Riksbank's ongoing sale of Swedish securities, reversing quantitative easing conducted during the low-inflation years of the COVID-19 pandemic.
"Going forward, this will place greater demands on banks to actively borrow from and lend to other banks, for example through so-called overnight loans," the Riksbank said in a statement.
(Reporting by Anna Ringstrom in Stockholm and Terje Solsvik in Oslo, editing by Stine Jacobsen)
((anna.ringstrom@thomsonreuters.com))