Balance of Payments in Q1 2021

In Q1 2021, Russia’s trade surplus reduced by almost one third compared to Q1 2020 due to growth in the total value of imports. Net capital outflows from the private sector decreased compared to the same period last year. This was mainly due to the growth of foreign banking assets and other sectors of the economy amid strengthening geopolitical risks, as well as the rapid recovery of the US economy. The Bank of Russia started buying foreign currency under the budget rule resulting in an increase in reserve assets in Q1 2021. At the end of Q1 2021, despite the relatively high oil prices and the improvement in the global economy, the ruble depreciated against the US dollar by 2.5%, which, most likely, resulted from tightening of geopolitical risks