For individuals: Internet bank
Select your city:

VTB Bank call center

+7 (800) 200-77-99
+7 (495) 739-77-99
For general information and enquiries

Federal budget pumps liquidity in February

On Wednesday, the overnight FX swap rate dropped to 5.45% on the back of continuing inflows of budget spending into the banking system. This is in line with our expectations because the consolidated budget sterilised RUB 730bn in the previous month as the budget surplus recorded a record high at RUB 466bn in January 2014. Hence, budget expenditures are likely to accelerate in the coming months and we see the almost 30% YoY increase in federal budget income as temporary (likely driven by higher oil volumes and some base effects in non-oil-and-gas income). Thus, the consolidated budget pumped about RUB 600bn into the system in early February, more than offsetting the impact of the constant FX interventions. Nevertheless, the average money market rates might remain close to 6% until annual tax payments in March-April 2014. The XCCY curve remains barely changed, with the 2-year rate at 7.01%. IRS rates moved down 10bp and are hovering around 7.5%, a level that we think is slightly elevated relative to the expected path of 3-month MosPrime.
Maxim Korovin, Anton Nikitin
VTB Capital analyst

rates, liquidity

Back to the list

VTB group news subscribe
  • E-mail subscribe
  • RSS lent
Download the list of cities.....