CBR expects sharp increase in total forex swaps
MOSCOW. June 18 (Interfax) - The Central Bank of Russia (CBR) expects a sharp increased in total forex swaps, the CBR's Deputy Chairman, Sergei Shvetsov, told journalists on Monday.
"We expect a sharp increase. This will be billions of rubles," he said, adding that Russian banks have been experiencing a deficit of both liquidity and coverage.
Shvetsov added that this entirely will depend on how many loan funds banks raise from the CBR for ensuring with non-market assets or collateral in the framework of CBR rule N312-P. Bank obligations for this type of lending come to 316.6 billion rubles compared to 495.1 billion rubles at the end of April.
He added that limits on forex swaps have not been set. "They will be needed and we'll set them. But, so far, no [limits have been set]," he said.
The CBR's board of directors convened last Friday and decided to reduce the rate for forex swaps (in the ruble section) from 8% to 6.5%.
Total Forex swaps implemented by the CBR under buy/sell terms with authorized commercial banks came to $285.3 million and 900.9 million euro in May.
