Capital Flow From Russia Past Its Peak, Central Bank oficial Says

Wednesday, 05 November, 2008

Capital outflow has already peaked in Russia, First Deputy Chairman of the Bank of Russia Alexei Ulyukayev told journalists today. He believes September and October saw the highest capital outflow figures, and the prospects are looking up. However, it is still hard to speak of any inflow, Ulyukayev admitted. Nevertheless, the Central Bank is leaving its forecast of full-year capital inflow unchanged, he stated. He also said he was satisfied with the gold and foreign exchange reserve structure and the basket of two currencies.

The Bank of Russia will be closely watching the foreign assets of banks granted unsecured loans. If banks begin to increase the share of their foreign assets, the Bank of Russia will take that into account when setting limits on auctions for unsecured loans. It appears that the measures the government and the Bank of Russia had taken have had their impact on the market, he said, although there are still no statistics available to confirm this view.

Source: http://www.rbcnews.com/