MOSCOW Feb 13 Russia's central bank said on
Monday it would use auction operations to compensate for
liquidity flows generated by the finance ministry buying foreign
currency to replenish the country's fiscal reserves.
In a regular report on liquidity, the central bank added
that non-residents had partially closed their long positions in
the rouble as a result of the finance ministry announcing the
dollar buying programme in late January.
The bank said it expected a structural liquidity surplus to
grow by the end of the year, but that a structural liquidity
deficit could form at some stage in the coming months.
(Reporting by Alexander Winning and Elena Fabrichnaya; Editing
by Andrew Osborn)