22 December 2017 EM Currency Handbook 2018: Still Fuel in the Tank Regulatory framework and approach • The Central Bank of Russia implementing monetary policy and intervenes in FX markets to preserve financial stability (http://www.cbr.ru). • 1-week, 28-days and 12-month FX repo auctions are held periodically to aid Russian companies rolling over foreign currency denominated liabilities, principally USD. Allotments are typically several billion dollars in size but have been as large as $6bn. State-owned exports have been encouraged in the past to increase foreign currency sales to support the ruble. • The Russian ruble is a fully accessible. fully convertible currency. Both deliverable and non-deliverable FX markets exist but the majority of the market trades deliverable. Non-deliverable spreads are slightly wider than deliverable spreads following the ruble turmoil. The latest BIS tri-annual survey ranks the ruble twelfth in FX turnover with a 1.6% total FX share, the third most liquid EMFX currency behind China and Mexico (and ahead of Norway in the G10). Onshore RUB products FX spot Avg. ticket size: Bid/ask spread: Avg. daily volume: Ref. source: Trading hours: FX forward swap Avg. ticket size: Liquid tenors: Bid/ask spread: Ref. source: C oss• Cu I runty swaps Avg. ticket size: Liquid tenors: Bid/ask spread: Fixing: Ref. source: USD 10mn RUB 0.04 USD 8-9bn EMTA fixing for NDF cRUBMCMEEMTA=>; backup fixing is EMTA RUB Indicative Survey Rate; www.emta.org 7:00-16:00 London USD 10-50mn <12M RUB 0.01.0.20 Reuters Page <DBMP> USD 1-2k DV01 lY - 5Y 10-20bp USD 3M LIBOR Reuters Page <DBMP> Regulatory: Government bonds, including OFZs. are fully euroclearable. so one can trade both on MICEX and OTC with e/c settlement. Foreigners don't pay any taxes, only locals. Avg. ticket size: USD 1 - 3 mn Bid/ask spread: 20 - 30 bp Ref. source: Micex Reuters <NRUTSY=MM> Offshore RUB products. Non-Deliverable Forward (NDF)