Net Capital Outflow From Russia Increased 1.7 Times In Eight Months
Net capital outflow in January-August 2020 increased by 1.7 times compared to the data for the same period last year — from $20 billion to $34.8 billion, according to the materials of the Central Bank of Russia.
According to the regulator, the decisive factor in increasing the outflow was the intensive reduction of banks ' obligations to non-residents.
Earlier today, the Central Bank reported that in August, foreign investors (non-residents) returned to selling Russian securities after purchases in July. Foreigners sold shares on the Moscow Exchange in August for a total of 34.2 billion rubles after purchases of 1.6 billion rubles in July this year.
"In August, the secondary stock market experienced a slight increase in volatility (relative to July 2020), and the resumption of sales by non-residents and foreign subsidiaries (shares were sold for 34.2 billion rubles), the NFO also made sales in the amount of 1.5 billion rubles. Net purchases of shares were made by NWCO (30.1 billion rubles) and other banks (5.7 billion rubles)," the Bank of Russia said in its monthly financial market risk Review.