Bank of Russia commentary on liquidity provision operations
The Bank of Russia considers the current liquidity position of the Russian banking sector to be sufficient for the sustainable functioning of the Russian financial system.
However, given the lengthy period of non-work days from 30 March through 3 April, in order to expand credit institutions’ capabilities to manage their own liquidity, and to preserve the conditions for money market rates to form close to the key rate, the Bank of Russia believes it reasonable to hold a repo fine-tuning auction in the amount of 500 billion rubles on 30 March 2020, with the first leg to be conducted on the auction day, and the second one — on 6 April 2020.
Next week, the Bank of Russia will continue to monitor the liquidity situation in the Russian banking sector and, based on its findings, will adjust the amounts of its liquidity provision and absorption operations.
