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Non-Residents Share in OFZ Indicates Effective Market Liberalization, says CB

24.10.2013 15:57 / Interfax

The increase in OFZ investment by non-residents indicates the effectiveness of market liberalization measures, particularly the elimination of the infrastructure risk premium, roughly estimated at 100 b.p., says First Deputy Chairman of the Central Bank Kseniya Yudaeva in a comment distributed by the Bank of Russia press office.

On 23 October, the Bank of Russia published data on non-residents’ OFZ investments. According to the CB, as of 1 September 2013, non-residents accounted for 24,9% of the OFZ market, versus 3,7% in early 2012. The maximum share of non-residents in the OFZ market was registered on 1 May - 28,1%.

The international clearing house Euroclear opened an account at Russia’s central depositary NSD in late December 2012, commencing OTC trading in OFZs on 7 February 2013. Euroclear was followed by Clearstream.

Yudaeva says non-residents have significantly increased their investment volumes since the domestic state debt market had been liberalized, mainly by an influx of new portfolio investment. She points out that foreign sovereign funds, institutional investors and short-term strategy players have arrived in Russia.

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