Capital outflow from Russia exceeds $42 billion

Capital outflow from Russia exceeds $42 billion

According to the Central Bank, the outflow of capital from Russia will reach 66 billion dollars in 2018.

2018 net capital outflow increased three times compared to the same period last year and amounted to 42.2 billion dollars, the website of the Central Bank (CB) states.

The regulator noted that the cashflow (the difference between income and expenditure) of private sector financial transactions with non-residents was molded by banks' operations to repay external liabilities and other sectors on the acquisition of assets abroad.

“It is associated with the events that we observed in August-September: the imposition of sanctions, the devaluation of the ruble in the context of high oil prices. There is a direct connection of this external background with capital outflows - people are afraid of sanctions and are trying to get money out of the country,” Alexey Devyatov, the chief economist at Uralsib Bank, told the BBC Russian service.

According to the Central Bank, the cashflow of the current balance of payments is assertive, it “allowed to continue the accumulation of the country's international reserves.” The regulator reports that they increased in January-October 2018 by $35.7 billion.

According to the Central Bank, the outflow of capital from Russia will reach 66 billion dollars in 2018.

Tags: Central Bank
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