On selling OFZ from Bank of Russia portfolio
During the period from April 2016 till January 2017, the Bank of Russia sold sovereign bonds (OFZ) with a total par value of 144.106 billion rubles from its portfolio. During the same period, the BoR-held OFZ with a total value of 39.618 billion rubles were redeemed. In addition, the failure of credit institutions to honour their liabilities under refinancing operations added OFZ with a total par value of 0.189 billion rubles to the Bank of Russia’s portfolio in January 2017.
| Par value of OFZ, billion rubles | |
| Sold in April 2016 | 60.694 |
| Sold in May 2016 | 59.207 |
| Sold in June 2016 | 11.580 |
| Sold in July 2016 | 0.630 |
| Sold in August 2016 | 1.168 |
| Sold in September 2016 | 3.456 |
| Sold in October 2016 | 3.833 |
| Sold in November 2016 | 2.307 |
| Sold in December 2016 | 0.335 |
| Sold in January 2017 | 0.895 |
| Redeemed since 1 January 2016 | 39.618 |
| Balance as of 1 February 2017 | 63.791 |
The Bank of Russia will continue to sell OFZ and report the volume of sales on the monthly basis.
The Bank of Russia’s OFZ sales allow it to partially absorb the liquidity inflow from financing federal budget deficit from the Reserve Fund. In addition, the OFZ sales may help increase liquidity and depth of the secondary government bond market.
The Bank of Russia sells OFZ issues at the Moscow Exchange. Nevertheless, the Bank of Russia tries to minimise the effect of sales on the OFZ market climate.
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