Australian Central Bank Will Expand Domestic Market Operations

By Victoria Batchelor

Oct. 8 (Bloomberg) -- The Reserve Bank of Australia will expand its market operations, including relaxing restrictions on the type of securities that can be used as collateral, as the global credit crisis deepens.

``Conditions in global money markets have deteriorated significantly in recent weeks, with flow-on effects to domestic markets,'' the Sydney-based central bank said in an e-mailed statement today.

The Reserve Bank said it will offer six-month and one-year repurchase agreements each day in its market operations.

In repurchase agreements, or repos, central banks typically buy debt securities for a set period, temporarily raising the amount of money available in the banking system.

To contact the reporter on this story: Victoria Batchelor in Wellington at vbatchelor@bloomberg.net.