29 Jun 2010 12:49

CB expects capital inflow to be sustained in June

MOSCOW. June 29 (Interfax) - The Central Bank of Russia expects private capital inflow in June to be level with April and May, CB First Deputy Chairman Alexei Ulyukayev said at the Renaissance Capital investment conference in Moscow.

"June will be the four successive month of net inflow," he said, recalling that inflow was approximately $10 billion in three months.

June inflow is expected to be level with April and May, he said.

Ulyukayev said that this allow for large forex offers on the domestic market, which, in turn, boosts the CB's forex reserves.

"However, we are not eager to boost them. We believe that the current level of $460 billion is very comfortable. Moreover, we could limit or halt reserve growth," he said.

He added that this would cause a domestic imbalance and a large inflow of forex would exert much pressure on the euro, forcing it upwards, which, during economic recovery, would not be very attractive for investors.