Page 29 - RUSRptAug18

Banks continued external deleveraging (-$9.5bn), funded by assets sales (-$7.4bn), a strategy they adopted from early 2015. Federal government deleveraging contributed $6.7bn to the total decline in liabilities of $17.1bn.
International reserves added $11.3bn, supported by FX purchases in line with the fiscal rule -- the latter brought as much as $15.5bn in the second quarter of 2018, according to VTBC
“However, that increase was offset by the decline in the CBR’s outstanding repo with non-residents, which we estimate to be close to $4bn,” VTBC said.
The Bank of Russia recently revised its flash estimate for the BoP in the first quarter of 2018 . The current account balance was lifted slightly upwards, from $28.8bn to $30.8bn. This adjustment came on the back of more upbeat exports (+$2.6bn), mostly of natural gas and other goods. The estimate of foreign assets acquisition was increased $7.1bn, helped by other sectors’ holdings (+$5.7bn). Foreign assets liabilities were just $0.9bn higher. For April-May, the CA has already accumulated a $19.1bn of surplus, which brings the estimate for the whole of the second quarter of 2018 closer to $29bn.The CA balance for the first half of 2018 brings bankers estimate of CA in 2018 even higher, from 5.6% of GDP to 6.5%. The Bloomberg-compiled consensus is more conservative, expecting a $25bn of surplus in the second quarter of 2018 .
29 RUSSIA Country Report August 2018 www.intellinews.com