CBR to lower limits at repo, deposit "fine-tuning" auctions by two thirds to 1 trln rubles Mar 16

MOSCOW. March 15 (Interfax) - The Central Bank of Russia (CBR), amid the emergence of a structural liquidity deficit in the banking sector, will hold a repo auction on March 15 with deposit duration of one week, the limit on which will be set on Tuesday, the CBR said in a statement.

The first portion of transactions in this auction will be executed on March 16 and the second will be executed on March 23, 2022.

The CBR will also continue to conduct "fine-tuning" operations, but the limit on them will be reduced to 1 trillion rubles from 3 trillion rubles as of March 16.

"The Bank of Russia will continue to hold 'fine-tuning' auctions daily on working days. However, the amount of these operations will be reduced due to the decrease in the scale of liquidity flows in the banking sector. Beginning March 16, 2022, the Bank of Russia will hold repo 'fine-tuning' auctions in the amount of 1 trillion rubles for the duration of one working day with execution of the first part of the transactions on the day of the auction, as well as deposit 'fine-tuning' auctions in the amount of 1 trillion rubles for the duration of one working day with deposit of money on the day of the auction," the CBR said.

The CBR said it will continue to monitor the liquidity situation in the Russian banking sector and as the situation stabilizes further it will return to the standard procedure for conducting monetary policy operations and regulating liquidity with weekly auctions.