Bank of Russia to switch to one-week repo auctions

Starting from 15 April 2025, the Bank of Russia will hold one-week repo auctions instead of deposit auctions. This is due to the expected further decrease in the structural surplus and the transition of the banking sector to the liquidity deficit as well as to the existing structure of credit institutions’ demand in the money market.

The one-week repo auction fixed for 15 April 2025 will be held according to the schedule, with the first leg to be conducted on 16 April 2025 and the second one – on 23 April 2025. The maximum allotment amount at the auction will be set on 15 April 2025. The schedule and parameters of the auction will be published on the Bank of Russia website in the sections Schedule for Repo and Repo Auction Announcements, respectively.

If the dynamics of liquidity factors change significantly or banks’ demand for the Bank of Russia’s standing lending facilities increases, the policymaker may have not only to provide but also to absorb liquidity. If the regulator decides to hold a one-week deposit auction instead of a repo auction, it will publish the relevant information on its website no later than the business day preceding the auction. As before, the Bank of Russia will seek to hold either repo or deposit one-week auctions to either provide or adsorb liquidity.

The system of Bank of Russia’s monetary policy instruments will remain unchanged. Banks will still have access to all standing facilities, both providing and adsorbing liquidity. Also, at the end of required reserve averaging periods, the Bank of Russia will continue holding either deposit or repo fine-tuning auctions in the amounts required for banks to fulfil the mandatory reserve requirements.

The Bank of Russia will continue to monitor the liquidity of the Russian banking sector to take this information into account when adjusting the amounts of liquidity-providing and liquidity-absorbing operations. The Bank of Russia aims to maintain money market rates close to the key rate and ensure a sufficient level of activity in the interbank money market.

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