NBB extends restriction on ruble liquidity operations until May 18, 2021
<p> MINSK, Jan 15 - PrimePress. The National Bank of Belarus (NBB) has extended until May 18, 2021, inclusive, the suspension of permanently available operations to support and withdraw liquidity, the bank’s press office reports. </p> <p> </p> <p> "The banks’ liquidity will be supported through monthly loan auctions to be held on the first day of the reserve requirement period. In addition, if necessary, based on the emerging liquidity situation in the banking system, seven-day credit auctions will be held," the statement said. </p> <p> </p> <p> As previously reported, the National Bank decided to provide liquidity to banks through auctions only from August 24 to September 15, 2020, then to October 13, and then to January 19, inclusive, pointing at the significant increase in the banks’ loan portfolio in Belarusian rubles amid the growing liquidity deficit, which puts additional pressure on the domestic foreign exchange market, and this decision aimed at reducing this pressure. The NBB also hoped that banks would conduct bilateral operations on the open market to support liquidity, taking measures to reduce its deficit. </p> <p> </p> <p> Belarusian banks have been experiencing a liquidity shortage due to the withdrawal of funds by clients, particularly after the presidential election of August 9, 2020 that has led to an acute political crisis in the country. End </p>
2021-01-16
Primepress
NBB extends restriction on ruble liquidity operations until May 18, 2021
MINSK, Jan 15 - PrimePress. The National Bank of Belarus (NBB) has extended until May 18, 2021, inclusive, the suspension of permanently available operations to support and withdraw liquidity, the bank’s press office reports.
"The banks’ liquidity will be supported through monthly loan auctions to be held on the first day of the reserve requirement period. In addition, if necessary, based on the emerging liquidity situation in the banking system, seven-day credit auctions will be held," the statement said.
As previously reported, the National Bank decided to provide liquidity to banks through auctions only from August 24 to September 15, 2020, then to October 13, and then to January 19, inclusive, pointing at the significant increase in the banks’ loan portfolio in Belarusian rubles amid the growing liquidity deficit, which puts additional pressure on the domestic foreign exchange market, and this decision aimed at reducing this pressure. The NBB also hoped that banks would conduct bilateral operations on the open market to support liquidity, taking measures to reduce its deficit.
Belarusian banks have been experiencing a liquidity shortage due to the withdrawal of funds by clients, particularly after the presidential election of August 9, 2020 that has led to an acute political crisis in the country. End