On the maximum allotment amount of the ruble liquidity using FX swaps

The Bank of Russia decided to limit the allotment amount of the ruble liquidity using FX swaps in order to stabilize the FX market conditions. The maximum allotment amount is established at 2 billion USD a day effective from 12 till 30 November 2014.

This decision was taken in addition to the earlier measures including abandoning regular FX interventions as well as an introduction of reverse transactions to provide foreign currency. Thereafter the Bank of Russia will assess the allotment amount of ruble liquidity using FX swaps taking into account FX market conditions.

The Bank of Russia uses overnight FX swaps as a standing facility aimed at limiting money market interest rate fluctuations. According to the Bank of Russia estimates, the established limit will not prevent FX swaps from fulfilling their role thus enabling the Bank of Russia to maintain control over market interest rates.

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