Support The Moscow Times!

Central Bank Ready to Support Liquidity

The Central Bank is ready to inject extra liquidity into the market, but as of yet there is no need, first deputy chairman Alexei Ulyukayev said Friday.

"If there is too much liquidity some unreasonable types of spending occur. … It is premature to inject extra liquidity," Ulyukayev told the Kommersant daily.

He said Russia is in "difficult situation" because the fiscal balance can only be achieved with oil prices at $110 per barrel.

"It can be hardly called rational," Ulyukayev said.

Urals crude oil, the country's main export blend, closed unchanged on Friday at $108.82 per barrel. It reached a high this year of $122.88 in April.

Ulyukayev also said the transparency of Russia's banking sector remains low and the Central Bank is facing difficulties itself and lacks financial analysts.

Read more