01699cas a2200241 a 4500 AALejournalIMF011667 230101c9999 xx r poo 0 0eng d 5.00 USD 9781463933838 1018-5941 BD-DhAAL BD-DhAAL Nyawata, Obert. Treasury Bills and/Or Central Bank Bills for Absorbing Surplus Liquidity : The Main Considerations / Obert Nyawata. Washington, D.C. : International Monetary Fund, 2012. 1 online resource (39 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper discusses the challenging question of whether central banks should use treasury bills or central bank bills for draining excess liquidity in the banking system. While recognizing that there are practical reasons for using central bank bills, the paper argues that treasury bills are the first best option especially because positive externalities for the financial sector and the rest of the economy. However, the main considerations in the choice should be: (i) operational independence for the central bank; (ii) market development; and (iii) the strengthening of the transmission of monetary policy impulses. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2012/040 Full text available on IMF http://elibrary.imf.org/view/journals/001/2012/040/001.2012.issue-040-en.xml IMF e-Library