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Bank of Russia lowers structural liquidity surplus forecast for year-end 2020

11 August 2020
News

The structural liquidity surplus for year-end 2020 has been revised downwards to 1.4-2.0 trillion rubles, as a result of higher estimates for cash outflows from banks and additional sales of foreign currency scheduled for October-December 2020.

The structural liquidity surplus went up in July 2020 as banks were depositing increasingly more funds with the Bank of Russia, while balances on correspondent accounts diminished. The impact of liquidity drivers was close to neutral, reports the new issue of Banking Sector Liquidity and Financial Markets, a BoR commentary.