7 Jul 2010 20:57

Capital inflow trend will continue in Q3 - Russian Central Bank

MOSCOW. July 7 (Interfax) - The Russian Central Bank believes that the trends that saw private capital flow into Russia, which began in March 2010, will continue in the third quarter as well, CB's First Deputy Chairman Alexei Ulyukayev told Interfax.

"The capital inflow trends have been evident for several months - March, April, May, June, and I see no reason why this situation should change in the third quarter. I think, most likely it will continue," Ulyukayev said.

The CB still believes that there will be zero activity on the capital account by the end of the year, so accordingly, by the end of the second half of the year there will be capital inflow that will stem the first-quarter outflow, he said.

"We are expecting trends towards a not too fast but fairly stable capital inflow," the CF first deputy chairman said.

By the end of the first quarter of 2010, Russia's net capital outflow stood at $14.7 billion. The country's total capital outflow in 2009 stood at $57.2 billion.