Bank of Russia, the “Megaregulator” of Russia’s financial markets, today announced its decision to to suspend 12-month FX repo auctions. The decision is effective April 1, 2016.
The watchdog explained that the move reflects weak demand for these facilities from Russian credit institutions and the shift of this demand to 28-day FX repos.
The Bank of Russia will keep setting the parameters for auctions to provide foreign currency on a reverse basis, taking into account the banking sector demand for FX liquidity, balance of payments forecast and domestic FX market developments.
For the official announcement from the Bank of Russia, click here.