Page 64 - RusRPTJul21

5.2.2 Current account dynamics
According to the Bank of Russia, the current account surplus of the balance of payments of the Russian Federation in January-May 2021 amounted to $35.8bn, an increase of a quarter compared to January-May 2020.
The growth in the trade surplus was due to a more active recovery in the volume of exports of goods compared to imports. The reduction in the negative balance of services as a result of persisting restrictions on international tourist travel also played a significant role in strengthening the current account.
The positive balance of financial transactions in the private sector in January-May 2021 was at a lower level than a year earlier and amounted to $24.6bn. In contrast to the trend of previous years, the contribution of the banking sector to the dynamics of the indicator was relatively small. Operations of other sectors, aimed both at reducing liabilities to non-residents and at increasing investments in financial assets abroad, became decisive.
The country's international reserves grew by $12.7bn as a result of foreign exchange purchases within the framework of the fiscal rule and the management of reserve assets.
64 RUSSIA Country Report July 2021 www.intellinews.com