The Central Bank plans to inject RUR 1.5 trn (the equivalent of $20.5 bln) into the banking system this month, according to Finanz.
The mega-regulator will issue long-term repo loans secured by bonds.
According to Bloomberg, this will allow the Central Bank to print more rubles and patch the hole in the budget caused by the falling oil prices without spending the National Wealth Fund (NWF).
The idea of firing up the money-printing presses is to support the country’s banking system, explains Artyom Deyev, head of analytics at AMarkets.
The RUR1.5 trn will be printed to allow banks to increase the money supply they need to issue loans, return deposits, provide preferential mortgages, and other operations. Banks with liquidity problems will receive funds that will protect them from bankruptcy.