Bank of Russia introduces additional temporary relief on limits of open currency positions in US dollars and euros

In addition to the measures previously taken to ensure the stability of the banking sector, the Bank of Russia introduces a temporary relief in respect of compliance with the limits of open currency positions (OСPs). The Bank of Russia will not apply measures to banks for non-compliance with the OCP limits in US dollars and/or euros provided the positions are oppositely directed (a long position versus a short position and vice versa) and have sufficient mutual compensation (the largest in absolute value of the two positions in ruble equivalent should not exceed the smallest by more than 10%). Also, the Bank of Russia will not apply measures for consequential non-compliance with the total OCP limit unless such non-compliance exceeds 15 pp. However, banks should not use this opportunity for speculative purposes.

This relief will allow banks to carry out internal hedging of opposite OCPs in US dollars and euros, which will reduce the costs of regulating positions in these currencies with the capital risks to be greatly limited.

This measure will stay effective until 31 December 2022.

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