MOSCOW Oct 14 Russian market players do not
expect volatility in the rouble exchange rate to increase in
October, the Russian central bank said on Friday.
The rouble enjoyed demand from foreign investors in
September but was resilient to sharp swings in prices for oil,
the country's key export, the central bank said in a monthly
report on banking sector liquidity.
The rouble moved between 62.64 and 66 against the dollar
in September, firming by 3.8 percent by the end
of the month compared with the end of August.
Foreigners were buying the rouble to invest in Russian
assets. Inflows of foreign funds into Russian treasury bonds
known as OFZs rose seven-fold in September compared with August,
the central bank said.
Demand for Russian corporate bonds was also substantial at
home, but Russia's placement of a sovereign Eurobond in
September created favourable conditions for corporate borrowers
to tap global capital markets, the central bank said.
The Bank of Russia said it was ready to address excess
liquidity in the banking system by holding regular deposit
auctions until the end of the year.
The central bank reiterated that inflationary expectations
still remain above its inflation target of 4 percent, which
suggests the central bank would like to keep its monetary policy
tight for longer to rein in inflationary expectations.
(Reporting by Elena Fabrichnaya, Writing by Andrey Ostroukh,
Editing by Alexander Winning)