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Russian central bank to use new $50bn tool to revive ruble
Russia's Central Bank has launched a new financial tool known as currency repo, or repurchase agreement, that'll provide up to $50 billion by the end of 2016. It is expected to support the Russian ruble that has lost more than 20 percent since January.
Russia’s key regulator is launching a new instrument on Monday, with the first auctions scheduled for October 29.
“These operations are aimed at further empowering credit institutions to manage their own short-term currency liquidity,” the bank said in a press release.
Put simply, the Central Bank of Russia is providing the country’s financial institutions with the much needed dollars that it will buy them back later, with interest. This is to relieve the pressure on the ruble that has been falling dramatically because of the political turmoil over Ukraine and cheapening oil …. http://rt.com/business
Source: http://luismmx.blogspot.com/2014/10/russian-central-bank-to-use-new-50bn.html
