Foreign investors show high demand for OFZ in April
In April, the Ministry of Finance made the largest ever recorded monthly OFZ placement worth 403.8 billion rubles at par value. Non-residents and subsidiary foreign banks continued to show high demand for government securities; they purchased 41.6% of the initial placement. This was assisted by foreign investors’ ongoing demand for emerging market assets overall and a rising oil price, notes the latest issue of the Financial Market Risks Review.
Foreign currency stocks that credit institutions accumulated amid a positive current account balance contributed to favourable FX liquidity conditions.
In April, non-residents and subsidiary foreign banks reduced long ruble positions in FX swaps with their monthly foreign currency sales in the FX market totalling 25 billion rubles, the bulk of this amount was used to buy OFZ at the auctions.