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5.2.2 Current account dynamics
In January-October 2020, the current account surplus of the balance of payments of the Russian Federation decreased to $29.9bn from $60.5bn in the same period a year earlier, according to the CBR.
The decisive factor was the significant weakening of the trade surplus due to the unfavourable international situation and the decrease in the supply of the main Russian export goods in physical terms. A significant reduction in the deficit in the balance of services and investment income had a levelling effect on the dynamics of the current account.
The balance of financial transactions in the private sector for ten months of this year amounted to $44.4bn against $26.4bn a year earlier. In contrast to the situation last year, when the key role was played by the reduction of banks' liabilities, in January-October 2020 the indicator was also formed due to a decrease in debt to non-residents of other sectors.
International reserves contracted by $10.7bn due to fiscal rule-based foreign exchange operations carried out by the Bank of Russia in the domestic foreign exchange market and the repayment of sovereign external debt.
56 RUSSIA Country Report December 2020 www.intellinews.com
