Russia Moves to Check Demand for Ruble With Higher FX Repo Rates
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The Bank of Russia said it will increase the cost of borrowing foreign currency through its operations for the second time in as many weeks, stepping up measures to blunt the world’s best rally by the ruble.
The minimum interest rate on foreign-currency repurchase agreements will increase by half a point to 1.5 percentage point over the London interbank offered rate for 28-day auctions and to Libor plus 1.75 percentage point for one-year offerings, the central bank said in a website statement. The changes are effective April 13, it said.