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Russia: banking squeeze intensifies amidst political unrest

The Central Bank of Russia (CBR) has cut the amount of funds it provides via its overnight repo auctions to the lowest level in almost two months in an attempt to shore up the ruble against a backdrop of increasing political unrest. But while this – along with heavy intervention by the CBR in FX markets – has helped to stabilise the currency, it has intensified the liquidity squeeze facing Russia’s banks.

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