Page 86 - RusRPTAug22

However, analysts say the fall is temporary due to record breaking current account surpluses, twice as large as previous highs.
Without a significant drop in exports and a revival of domestic demand and / or an acceleration of capital outflow, the ruble in the coming months is unlikely to be able to confidently overcome the mark of 65 per dollar, but rather will consolidate in the range of 55-60, Dmitry Polevoy believes.
But with such indicators of the balance of payments, the ruble may still strengthen even with the restoration of imports to previous highs of $25-30bn per month, said Dmitry Tunev, chief analyst at Ingosstrakh Investments.
The Central Bank of Russia (CBR) has removed nearly all its capital controls. From July 1, 2022, Russian resident individuals have the right to transfer within a calendar month from their account in a Russian bank to their account abroad or to another person no more than 1mn US dollars or the equivalent amount in another foreign currency. A similar threshold has been set for transfers of resident individuals from friendly states. Previously, the restrictions on these transactions amounted to 150 thousand US dollars. Limits on transfers have been increased due to the stable situation in the domestic foreign exchange market.
CBR clarified some currency rules in June. The Central Bank published an extended response to FAQs foreign currency transfer on 27 June. It clarified under what conditions foreign currency transfers by resident individuals between their accounts opened with banks and other financial market institutions located abroad are possible:
▪ From accounts opened with foreign banks before March 1st2022 to one's own accounts with foreign banks
▪ From accounts opened with foreign banks, regardless of the date of their opening, to one's own accounts in foreign banks in 'friendly' countries
▪ In the case of foreign currency transfers for the maintenance of property (including repairs, security, and other expenses) that is located on the territory of foreign countries and belongs to individuals who are residents by right of ownership. The amount of such transfers cannot exceed the amount of respective funding for such purposes for the preceding calendar year
86 RUSSIA Country Report October 2020 www.intellinews.com