Russian banking liquidity scarcity widens to 7 trillion roubles, central financial institution says

A Russian state flag flies over the Central Financial institution headquarters in Moscow, Russia March 29, 2021. An indication reads: “Financial institution of Russia”. REUTERS/Maxim Shemetov

MOSCOW, March 2 (Reuters) – The Russian banking system’s liquidity scarcity widened to six.9 trillion roubles ($68.25 billion) on Wednesday, the central financial institution stated, up from 5.4 trillion roubles a day earlier than as folks rush to withdraw money.

Moscow faces harsh financial sanctions from the US, European Union and their allies after Russia invaded Ukraine, which have hit the rouble and spurred folks to tug their cash out of banks.

The central financial institution supplied banks with $70 billion in rouble liquidity by way of two repo auctions on Tuesday and it plans to spice up the monetary system with one other 6 trillion roubles by way of repo and deposit auctions on Thursday.

Russian banks owe the central financial institution 9.6 trillion roubles in complete as of Wednesday, it stated, up from 8.2 trillion roubles a day earlier than.

Russia calls its actions in Ukraine a “particular operation” that it says just isn’t designed to occupy territory however to destroy its neighbour’s navy capabilities and seize what it regards as harmful nationalists.

This week, Russia’s central financial institution has greater than doubled its major lending charge to twenty%, attempting to assist the rouble and appeal to some funds again to the banking deposits.

($1 = 101.1000 roubles)

Reporting by Moscow Newsroom. Modifying by Jane Merriman

Our Requirements: The Thomson Reuters Belief Ideas.