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Russian banks increase liquid forex assets by $8.5 billion in Jan -Breaking

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© Reuters. FILE PHOTO: A view reveals a Russian rouble coin and a U.S. greenback banknote on this image illustration taken October 26, 2018. REUTERS/Maxim Shemetov/File Picture

By Elena Fabrichnaya and Katya Golubkova

MOSCOW (Reuters) – Russian banks elevated their liquid property held in foreign currency echange by $8.5 billion in January to $53.5 billion, the central financial institution mentioned on Monday, in an indication lenders might attempt to enhance their foreign exchange defend in gentle of recent sanctions menace.

The USA is contemplating new sanctions towards Russia, proposing to chop a few of its high banks from greenback transactions and lowering their capability to service dollar-denominated obligations, sources instructed Reuters.

Sanctions would come right into a drive if Russia invaded Ukraine, a transfer the Kremlin denies is on the playing cards regardless of a big Russian troop buildup close to its neighbour’s borders.

Banks’ liquid foreign exchange property, equivalent to money held by lenders instantly and within the central financial institution in addition to short-term loans and different non-rouble instruments which could possibly be simply claimed, stood at $45 billion in December, the central financial institution mentioned in a report.

Earlier on Monday, Russian rankings company ACRA estimated that the nation’s banks imported $5 billion value of foreign exchange banknotes in December, double from a yr in the past, in a pre-emptive step in case sanctions create elevated demand.

The central financial institution declined to touch upon ACRA’s calculations, nor did it present a breakdown for the banks’ liquid foreign exchange property disclosed in its report Monday.

Nevertheless, it mentioned that final month, lenders had 21% of their shoppers foreign exchange funds and 15% of banks’ liabilities coated by liquidity – a safety cushion if clients demand a speedy withdrawal. That was up from 18% and 13% in December, respectively.

Though retail shoppers withdrew 810 billion roubles from their present accounts final month, Russian banks managed to publish 164 billion roubles ($2 billion) in January revenue, up by 47% from the earlier month, the central financial institution mentioned.

($1 = 79.2050 roubles)

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