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Principal Terms and Conditions Pertaining to the Sale of Bills


April 27, 2000

Revision:October 13, 2000
March 19, 2001
September 18, 2002
September 19, 2007
February 18, 2014
January 31, 2017

1. Purpose

These Terms and Conditions prescribe the principles for the Bank of Japan's sale of bills issued by the Bank with the aim of facilitating money market operations.

2. Location of the Operations

At the Head Office (Operations Department) of the Bank.

3. Eligible Counterparties

  1. (1) Eligible counterparties shall, pursuant to the Bank's relevant rules, be selected from financial institutions, etc. (as defined in Article 37, Paragraph 1 of the Bank of Japan Act [Act No. 89, 1997]) satisfying the eligibility criteria listed below.
    1. (a) To have a current account at the Bank.
    2. (b) To be deemed sufficiently creditworthy in light of its capital condition and other relevant information obtained through the Bank's on-site examinations and so forth.
  2. (2) In principle, the Bank shall review eligible counterparties annually.
  3. (3) If the Bank specifically deems it necessary in order to conduct money market operations smoothly, it can implement such measures as an exclusion of the institution in question from eligible counterparties.

4. Bills to be Sold

The Bank shall sell bills whose drawers, drawees, and payees are the Bank itself, and whose acceptance the Bank has completed. The date of maturity of the bills must be within three months from the next date of sale.

5. Selling Method

A multiple-rate competitive auction shall be conducted for each sale where counterparties bid rates of discount.

6. Dates for sales, Amount of Bills to be Sold, etc.

Taking into account conditions in financial markets, the Bank shall determine specifications necessary for sales, including dates for sales, amount of bills to be sold, and counterparties, for each sale.