Central Bank of the Russian Federation Enacts Emergency Measures to Stabilize Financial Markets

Posted on 02/24/2022

Central Bank of the Russian Federation (Bank of Russia) enacted its first emergency measures in an attempt to stabilize the financial market after Russia started its invasion in Eastern Ukraine. The central banks seeks to intervene in the foreign exchange market for the first time in years and expand its Lombard list of securities accepted as collateral, according to a statement. The regulator made no mention of raising interest rates. The central bank plans to provide additional liquidity to banks by offering 1 trillion rubles in an overnight repo auction.

In a translated statement by the central bank, “The Bank of Russia will ensure the maintenance of financial stability and business continuity of financial institutions by using all the necessary tools. The Bank of Russia and financial institutions have clear action plans for any scenario.”

LINK: https://cbr.ru/press/event/?id=12710

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