Bank of Russia downgrades its 2020 structural liquidity surplus forecast
12 November 2020
News
The structural liquidity surplus edged lower in October, driven by outflowing funds in budgetary operations as Russia’s Finance Ministry borrowings intensified. Cash in circulation was expanding at a lower pace and fluctuated close to its seasonal patterns.
As economic activity normalises, demand for cash is expected to gradually approach pre-pandemic levels; this will not happen until 2021, however. In this context, the Bank of Russia has revised downwards its forecast for a structural liquidity surplus in late 2020 to
