Page 68 - RusRPTMay20

7.1​ FX issues
Unlike many other EM Russia doesn’t have a shortage of dollars but is preparing a FX repo mechanism just in case it is needed.
The external debt of the Russian Federation as of April 1, 2020, according to the Bank of Russia, amounted to $ 450.0 billion, having decreased by $ 40.8 billion, or 8.3%, since the beginning of the year.
Since non-residents have large-scale investments in Russian OFZs denominated in rubles, the exchange rate revaluation of their investments has reduced the amount of accumulated debt on debt securities of the Government of the Russian Federation, the Central Bank explained.
Sberbank does not expect a massive margin-call in the debt market, since a panic liquidation of positions has already occurred in mid-March, and the main margin-calls could have worked during this acute period, he added.
Future repayments of Russian companies in foreign currency debt no longer have a noticeable effect on the ruble exchange rate, as was the case in the previous crisis.
“Gross payments by companies and banks in April (on external debt) are estimated at $ 4.4 billion. Judging by the statements of the Central Bank, the share of intragroup payments there is low, but, according to their estimates, these companies have a sufficient supply of foreign currency liquidity, ”Dmitry Dolgin, chief economist for Russia at ING Bank, said.
The head of the Bank of Russia Elvira Nabiullina at the beginning of April
68​ RUSSIA Country Report​ May 2020 ​ ​www.intellinews.com