CBR does not yet see the need to launch additional tools to support banks in yuan

MOSCOW, May 26 (Reuters) – The Central Bank of Russia believes that the situation in the yuan market is changing – it is getting less tense, so there is no need to launch additional tools to support banks in yuan, CBR first vice president Ksenia, said Yudaeva.

“We’re seeing our swap limit not even being dialed,” she said at a briefing on Friday.

In early May, banks borrowed 4.58 billion Chinese yuan from the Central Bank under a currency swap facility of 10 billion yuan due to a temporary shortage of currency liquidity.

Yudaeva said temporary imbalances in yuan liquidity are also related to Chinese capital constraints, not all banks can handle yuan offshore.

Sberbank’s senior managing director and chief analyst Mikhail Matovnikov said the day before that the Russian market is in short supply of yuan as the country receives virtually no foreign trade, and this structural problem remains a serious one for the banking system. (Elena’s Factory)