Finance Ministry mulls OFZ bond auctions over currency volatility
MOSCOW, Mar 10 (PRIME) -- The Russian Finance Ministry will decide on the auctions of OFZ federal bonds taking into account high volatility of currency markets, the ministry said in a statement on Monday.
The Russian ruble plummeted to 73.32 rubles per U.S. dollar and to 83.02 rubles per euro, the lowest levels since 2016, on the international currency market in Monday following a 30% plunge of oil prices.
“Taking into account the high volatility of financial markets, decisions about OFZ placement auctions will be made taking into account the market situation in order to support the process of stabilization of the market situation and to avoid excessive pressure on the debt market,” the ministry said.
Reduction in OFZ bond borrowing may be compensated through other sources of financing of the budget deficit.
“In case the national currency’s rate weakens against the forecasted level of 65.7 rubles for this year, the corresponding increase of the baseline oil and gas revenue of the federal budget this year may be allocated on the equivalent reduction of the planned demand for borrowing,” the ministry said.
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