Russian central bank sold USD 14.9 bln at two long-term repo auctions

The Russian central bank sold 1.1 trillion roubles at two long-term repo auctions on Monday. Repo, or repurchase agreement, auctions help prevent rouble liquidity shortages in the banking sector, which became more acute last year as the COVID-19 pandemic and a sharp fall in oil prices bruised Russia’s economy, leading the finance ministry to more than double its domestic borrowing. In 2021, Russia plans borrowing around USD 1 billion a week. Liquidity at such auctions has become more affordable since the central bank slashed its key rate to a record low of 4.25% last year (USD1 = 74.5850 roubles) (USD1 = 74.6150 roubles).