Bank of Russia to hold one-week repo auction and fine-tuning auctions

As the banking sector is facing structural liquidity deficit, on 15 March 2022, the Bank of Russia will hold a one-week repo auction with the first leg to be conducted on 16 March 2022, and the second one —— on 23 March 2022. The maximum allotment amount at the auction will be set on 15 March 2022. The schedule and parameters of the auction will be published on the Bank of Russia website in Repo operations schedule and Repo auctions parameters, respectively.

To expand credit institutions’ capabilities to manage their liquidity and maintain overnight money market rates close to the key rate, the Bank of Russia will continue to hold fine-tuning auctions daily on business days. However, the volume of such operations will be reduced following the decline in liquidity flows in the banking sector. Starting from 16 March 2022, on business days, the Bank of Russia will hold fine-tuning overnight repo auctions in the amount of 1 trillion rubles, with the first leg to be conducted on the auction day, and fine-tuning overnight deposit auctions in the amount of 1 trillion rubles, with the deposit date to be the auction date.

The Bank of Russia will continue to monitor the liquidity situation in the Russian banking sector and, as the situation stabilises further, will return to the standard procedure for conducting monetary policy operations and regulating the volume of liquidity through one-week auctions.

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