Currency converter
All news
News Search Topics
Use filter
You can filter your feed,
by choosing only interesting

Bank of Russia says low oil prices lead to depletion of oil exporters' sovereign funds

December 02, 2016, 21:48 UTC+3 MOSCOW
1 pages in this article

MOSCOW, December 2. /TASS/. Continuing low oil prices will lead to depletion of sovereign funds of oil exporting countries, the Bank of Russia said on Friday in the Financial Stability Review.

"If oil prices remain at a low level in recent years, the need to spend the fiscal buffer may adversely affect financial stability of oil exporting countries. Depletion of sovereign funds may undermine confidence of market participants, adversely affect attitude of foreign investors and cause growth of borrowing costs," the regulator said in the review.

Furthermore, withdrawal of government deposits from the banks may result in liquidity shortage in the banking system and exert pressure on interest rates, the Bank of Russia said.

At the same time, government bonds floating on domestic and international markets will contribute to financial market development on the one side but will escalate debt stability risks on the other side, particularly in case of declining confidence of investors and higher debt service costs, the Russian regulator noted.

Show more
In other media
Partner News