Forex REPO deals able to satisfy market demand completely - Central Bank
MOSCOW. Nov 25 (Interfax) - Forex REPO deals will be able to satisfy demand from market participants entirely, the head of the Central Bank's monetary policy department, Igor Dmitriyev, said at a meeting of the Association of Regional Banks of Russia's expert council.
Demand for foreign currency through these instruments is not high for now, but this might rise as new payment deadlines on foreign debt approach.
"In our opinion, the upcoming large flows [of payments] for this quarter and next year might partially be satisfied through refinancing on the market. We are seeing issuing activity by many market participants. Debt might be partially settled using assets that the banking and corporate sector has at its disposal, and flows will rebound partially after the current account is adjusted to new realities," he said.
Dmitriyev added that the forex REPO tool might completely satisfy the demand of market participants.
Discussing the situation on the ruble liquidity market, he said: "Really, our liquidity deficit [will last] a long time. But this is a normal occurrence for any Central Bank since it allows the situation to be controlled."
Russia's Central Bank estimates Russian banks' demand for refinancing in early 2015 at 7.6 trillion rubles.