Russia. Central bank to offer $31 bln stimulus to banks to avoid liquidity crunch
Russia's central bank is ready to offer up to 1 trillion rubles ($31 billion) to banks to replenish their ruble liquidity, Central Bank Chairman Sergei Ignatyev said on Monday.
"As we sell foreign currency, some shortage of ruble liquidity may emerge in the banking sector. We are currently actively providing this liquidity through overnight repo deals and other instruments, offering daily up to 200 billion rubles, normally for short-terms, for one day. If necessary, we'll provide more and are ready to offer up to 1 trillion rubles," he said.
The regulator may resort to refinancing schemes used during the crisis period of 2008-2009, he said.
The Central Bank does not foresee any special risks for the ruble and its exchange rate on the domestic foreign exchange market is expected to stabilize soon, he said.
"The prices of Russian export commodities remain quite high and therefore I don't see any special risks for the ruble exchange rate. On the contrary, it is more likely that the ruble will strengthen rather than weaken amid the current oil prices," he said.
The ruble rate has been relatively stable for the past two weeks, he said.
"The situation has stabilized more or less in the last two weeks after quite a sharp devaluation in August and September," he said.