CBA got rid of 70% of the portfolio of government securities


In April—June 2016 the Bank of Russia sold Federal loan bonds from its own portfolio on 131,48 billion roubles, is spoken in the message of the Central Bank. In June the regulator sold paper by 11.58 billion rubles in may to 59.2 billion rubles in April — by 60.7 billion rubles By July 1, 2016, subject to accelerated OFZ (31,93 bn) in the portfolio at the Central Bank remained bonds of 66.8 billion rubles.

The Bank of Russia began to sell OFZ bonds in April 2016, partly to absorb the influx of liquidity associated with the financing of the Federal budget deficit at the expense of the Reserve Fund. “In addition, the sale OFZ could contribute to increasing the liquidity and depth of secondary market for government securities”, — stated in the message controller.

Central Bank concerned about the excess liquidity that accumulates and leads to a decrease in interest rates. According to the chief economist for Russia and CIS “Renaissance Capital” Oleg Kuzmin, with surplus rates in the market decline below the key, and therefore regardless of the desire of the Central Bank monetary policy beginning to wear off he might become a threat to the inflation target. In addition, as previously said, the chief economist at FG BCS Vladimir Tikhomirov, selling OFZ, the regulator is trying to prevent the flow of liquidity in the foreign exchange market, which can lead to speculation and will have a negative impact on the ruble.

As stated by the head of the Central Bank Elvira Nabiullina at a press conference following the meeting of the Board of Directors on 10 June, sales of OFZs will continue. “We will sell them as market opportunities. This is an extremely illiquid paper,” she said.

Previously Nabiullina said that to reduce excess liquidity in the banking sector, the Central Bank is ready to issue its own debt securities — ARR. “We will conduct a test accommodation as available regardless of when you sell out the rest of OFZ,” — said Nabiullina at a press conference. The first Deputy Chairman of the Central Bank Dmitry Tulin said that a test issue Bank of Russia bonds can be held in November 2016.

Options for future operations now being discussed, but it seems preferable to hold bonds that will be bound floating coupon rate to the key rate. If we were to conduct operations with bonds of the Central Bank, set the condition that this does not coincide with the BFL. The bonds will be for a period of up to one year, quarterly coupons,” — said the Deputy Director of monetary policy Department, Bank of Russia Alexander Polonsky, speaking at the International financial Congress in St. Petersburg. He said that the Central Bank is ready to sell ARR when the surplus liquidity will be considerable — more than 1 trillion rubles.

The exact volume of issue of bonds of the Bank of Russia was not called. According to the forecasts of Raiffeisenbank, the volume of emissions samples can be 700 billion rubles.