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. Last Updated: 07/27/2016

Ruble Bounces on Liquidity Crunch

The ruble clawed back some of its previous heavy losses Monday due to a sharp liquidity shortage as banks needed rubles to pay taxes and ahead of expected strong export revenue sales, dealers said.

The ruble's weighted average for today settlement rose to 29.2544 per dollar Monday from 29.2766 per dollar Friday in a unified session of eight exchanges.

Volume was an average $108.16 million.

Based as usual on the session's results, the Central Bank raised its official next-day rate to 29.25 per dollar after a previous 29.28 per dollar.

"Today the banks' balances fell sharply. It's not quite clear what happened — on the one hand, taxes are being paid, funds are transferred to the region, but on the other hand, such a sharp fall was not anticipated Friday," said a dealer.

Dealers said the ruble was likely to gain more strength in the next few days, depending on the liquidity situation, especially as banks would need rubles to take part in a domestic debt auction this week.

The Finance Ministry is scheduled to offer 4 billion rubles worth of four-month GKO treasury bills Wednesday.