From November 25, 2024 to March 3, 2025, the Central Bank of Russia holds repo auctions every week for one month.
The regulator decided to resume repo auctions for one month, taking into account the expected increase in the uneven distribution of liquidity between banks due to the increasing volume of budget flows at the end of the year.
Budgetary processes are characterized by a time gap between the accumulation of income, the placement of government bonds, and the implementation of expenditures.
The data confirms that the provision of funds by the Central Bank on a refundable basis within the framework of monthly auction operations would alleviate these temporary imbalances.
Credit institutions that have concluded general agreements with the Bank of Russia will be able to participate in the auctions.
The minimum price is set at the level of the key price, with an increase of 10 basis points and in the event of a change in the key price by the same amount, the price on concluded repo transactions will change.
OFZs will be accepted as collateral, as well as bonds of constituent entities of the Russian Federation and municipalities with the highest credit rating. The maximum amount of funds offered in each auction will be determined based on the current and expected liquidity situation in the banking sector.
According to the Central Bank’s forecasts, the maximum volume of demand for these operations will be at the end of this year and after that, the regulatory body intends to systematically reduce the volume of funds offered in each auction from February 2025 and it is assumed that by the end of the first quarter of 2025, it will be reset. Debt on these operations.
