The entire value of net capital inflow ($37.1 billion) was registered in the second quarter of the year. The CBR registered the banking sector's $3 billion capital outflow in the first quarter of 2006 and $9.9 billion capital inflow in the second quarter of 2006, the country's chief bank said, citing balance of payments data.
Sergei Ignatyev, the CBR chairman, said Wednesday net capital inflow into Russia hit $67 billion in January-June 2007 from $14 billion in the same period last year.
Ignatyev said auctions for the assets of bankrupt oil company Yukos, the initial public offerings by state-run retail savings bank Sberbank and government-controlled foreign trade bank Vneshtorgbank (VTB) were the main contributory factors in the sharp increase in capital inflow in Russia.
Ignatyev said net capital inflow in Russia was expected to slow down considerably to stand at $70 billion by the end of 2007, compared with $42 billion in 2006.
Ignatyev said considerable slowdown in capital inflow into Russia in the second half of the year would contribute to slower growth in the country's gold and foreign currency reserves and money supply.
As a result, the Central Bank will be able to keep inflation within the 8% target and the ruble's appreciation against the dollar/euro basket will stay within the range of 4-5% in 2007, Ignatyev said.
