Central bank nearly doubles capital flight forecast for 2011

The Russian central bank has nearly doubled its 2011 private capital outflow forecast to $70 billion from $36 billion previously, the bank said in adjusted monetary policy guidelines sent to parliament on Tuesday. In 2010, Russia's private net capital outflow amounted to $38.3 billion, compared to $56.9 billion a year earlier. Analysts have said private capital is leaving Russia due to its poor economic performance, and unfriendly investment climate. They warned the country would continue bleeding money unless it carries out meaningful reforms. The central bank also said Russia's current account surplus would be sufficient to maintain a stable level of foreign exchange reserves, which will increase by $22.7 billion by the end of the year.An international reserve forecast for 2011 was cut to $495 billion from $515 billion. In September, Russia's international reserves fell 5.2 percent to $516.848 billion due to currency revaluation following a slump in the euro rate and major central bank intervention to support the ruble.