painther, You haven't read my post carefully. Here is what I said "Central banks GENERALLY do not lend money to banks at any rate.. unless there is a programme to inject funds to the economy for open market operations."
I did not say that commercial banks CANNOT borrow money from the Central Banks. In a very few countries Central Banks lend money to banks for enacting monetary policy, this is where repo rate and reverse repo rate come into play. However, large number of countries have a system where banks use inter-bank borrowing instead of borrowing for Central Banks. In Qatar QCB does not lend money to commercial banks, but only in extraordinary circumstances. Reverse repo rate does not exist here.
painther, You haven't read my post carefully. Here is what I said "Central banks GENERALLY do not lend money to banks at any rate.. unless there is a programme to inject funds to the economy for open market operations."
I did not say that commercial banks CANNOT borrow money from the Central Banks. In a very few countries Central Banks lend money to banks for enacting monetary policy, this is where repo rate and reverse repo rate come into play. However, large number of countries have a system where banks use inter-bank borrowing instead of borrowing for Central Banks. In Qatar QCB does not lend money to commercial banks, but only in extraordinary circumstances. Reverse repo rate does not exist here.