Repo standing facilities of the Primary mechanism of liquidity provision
Repo standing facilities of the Primary mechanism fulfil two objectives. First, their fixed interest rate (currently the key rate plus one percentage point) makes the upper bound of the interest rate corridor, that is the range within which interbank market overnight rates can fluctuate. Second, these transactions allow the credit institutions that for some reason have failed to borrow funds in the money market to attract overnight liquidity at the Bank of Russia with securities as collateral.
These repos are conducted at the bid of a credit institution submitted to the Bank of Russia through the Moscow Exchange or Saint Petersburg Currency Exchange. Bids from credit institutions are executed in full amount if their parameters meet the established terms and conditions and the required volume of securities is available. The instrument is available to credit institutions on a daily basis at the time established by the Bank of Russia (Repo Operations Schedule).Information on the terms and conditions of repo standing facilities of the Primary mechanism and their results are published daily on the Bank of Russia website: Repo Standing Facilities.