honestly think that a lot of banks were discouraged by the

Russian central bank sees meagre demand for new forex repos

canada goose coats on sale MOSCOW, Oct 29 (Reuters) A debut auction of forex repos by Russia central bank on Wednesday met with lacklustre demand, with analysts saying banks were deterred from taking up the offer by a relatively high interest rate and short term nature of the Canada Goose Parka instrument. canada goose coats on sale

canadian goose jacket The $50 billion repo programme canada goose is seen as one of the steps to shore up the rouble, which has been plunging as a result of falling oil prices and the impact of Western sanctions cheap Canada Goose imposed Canada Goose Jackets over Ukraine, Canada Goose Online at a time when Russian companies need billions of dollars to pay impending foreign debt payments. canadian goose jacket

canada goose clearance sale The central bank has said that the scheme will smooth a possible rise canada goose store in volatility of the exchange rate canada goose clearance sale

canada goose By providing an alternative source of dollars and euros, the repos loans that https://www.canadagoosejacketca.ca are collateralised by banks holdings of securities should help reduce demand for forex on the currency market, reducing the selling pressure on the rouble. canada goose

But there was little to suggest any thirst for dollars at Wednesday auction, with banks bidding for only $201.2 million a fraction of the $1.5 billion that was an offer.

cheap Canada Goose clearly $200 million looks quite tiny, said Maxim Korovin, fixed income analyst at VTB Capital. honestly think that a lot of banks were discouraged canada goose outlet store locations by the pricing 2.4 (percent) for just one month looks a Canada Goose Coats On Sale lot. Given that it was collateralised, the spread over LIBOR should not be high. cheap Canada Goose

canada goose clearance The average yield was 2.4039 percent. The central bank had earlier set a minimum yield of 2.4035, determined canada goose black friday sale as a spread of 2.25 percentage points above the dollar London Interbank Rate (LIBOR). canada goose clearance

buy canada goose jacket cheap Korovin also said that canada goose clearance sale limited demand for the new facility reflected heavy interventions by the central bank to defend the rouble, providing a steady flow of dollars into the market Canada Goose online that dwarfs the amount available from the new repo facility. buy canada goose jacket cheap

Canada Goose Parka So far buy canada goose jacket cheap this month the central bank has expended over $20 billion in forex reserves, with daily amounts of $2 2.5 billion Canada Goose Outlet typical in recent days. Canada Goose Parka

Canada Goose Outlet Vladimir Evstifeev, an analyst at Bank Zenit, said that the lack of demand had less to do with the terms of the instrument, and more with the fact that by their nature the repos cannot address the fundamental causes of the forex shortage. Canada Goose Outlet

canada goose coats main buyers of foreign currency at the moment are big banks, which are accumulating liquidity for companies which need to repay foreign debts in the months ahead, he said. canada goose coats

Canada Goose sale in such conditions the foreign currency repo mechanism can do nothing to help stop the weakening of the rouble, because it isn able to address the real demand for currency. Canada Goose sale

Canada Goose online PLAN B? canadian goose jacket The role of the forex repos may nevertheless increase in future. From the start of next year the central bank plans to cease its canada goose coats regular interventions in the currency market when it allows the rouble to float, cutting off one of the major sources of forex. Canada Goose online

canada goose deals The central bank has said it is willing to lend up to $50 billion under through the new facility by the end canada goose clearance of 2016, with the weekly limit set at $3.5 billion. The weekly limit includes$1.5 billion for 28 day repos and $2 billion for 7 day ones. canada goose deals

The bank has also said that, under pressure from banks, it is considering extending the terms of such repos canada goose uk shop to include 1 3 year repos much longer time Canada Goose sale frames than the one week and 28 day repos now on offer.

buy canada goose jacket However, neither the newly launched facility nor talk of additional ones has done much to arrest the slide in the Russian canada goose coats on sale currency. On Wednesday the rouble fell by around 1 percent against both the dollar and cheap canada goose uk the euro to new record lows. buy canada goose jacket

canada goose store Most analysts believe that the central canada goose uk black friday bank will soon take more steps to defend the currency, including a rise in interest rates on uk canada goose Friday when the bank board meets. canada goose store

Canada Goose Jackets The bank has raised its key lending rate three times this year, by a cumulative 250 basis points to 8 percent. buy canada goose jacket Analysts are now betting on a further 50 100 basis point rise on Friday. Canada Goose Jackets

canada goose black friday sale ongoing rouble slide and inflation canada goose uk outlet acceleration has made canada goose factory sale it uk canada goose outlet all but impossible for the CBR not to hike on Oct. 31, Citi economist Ivan Tchakarov said in a note. (Reporting by Jason Bush, Alexander Winning and Lidia Kelly; Editing by Mark Heinrich) canada goose black friday sale.


This site uses Akismet to reduce spam. Learn how your comment data is processed.