About forthcoming publication of the balance of payments of the Russian Federation data under new methodology

The External and Public Relations Department of the Bank of Russia informs about the forthcoming transition by the Bank of Russia toward disseminating the balance of payments of the Russian Federation data on the basis of the methodology set out in the 6th edition of the IMF’s Balance of Payments and International Investment Position Manual (BPM6) beginning with the first quarter of 2012.

Conceptually, BPM6 maintains the overall framework of the methodology of the previous (fifth) edition of the Manual (BPM5). BPM6 deepens the harmonization of the IMF’s external sector statistics’ recommendations with the update of the System of National Accounts, and the international standards in the area of direct investment statistics and other macroeconomic statistics.

The main changes in the accounts of the balance of payments include the following: within balance on trade in goods — goods for and after processing are excluded and net exports of goods under merchanting are included; within balance on trade in services — manufacturing services on physical imports owned by the others and financial intermediation services indirectly measured (FISIM) items are added; within balance on income — rent is included; within capital account — migrants’ transfers are excluded; within financial account — transactions of other sectors’ are further broken down into other financial corporations and nonfinancial corporations, households, and nonprofit institutions serving households (NPISHs). Balance on income and balance on current transfers have been respectively renamed as primary income and secondary income accounts.

Calculations of some of the balance of payments items and data aggregations have been adjusted in many other instances to reflect the improved methodology and reclassification of certain components in accordance with BPM6, which was done by the Bank of Russia in earlier data publications for 2010 and 2011.

Earlier balance of payments statistical data compiled in accordance with BPM5 recommendations remain overall relevant for comparisons with the aggregates compiled under the new methodology. Nevertheless, for methodological consistency and better comparability between new and previously published time series of detailed statistical datasets, the Bank of Russia intends to revise by the end of 2012 time series of all external sector statistics of the Russian Federation for the period since 1992.

The Bank of Russia will continue to publish its balance of payments statistics data in the previously used presentation form which is based on the use of credit (plus) and debit (minus) entries. The transition to the BPM6-recommended system of data presentation is postponed until the database revisions’ work is completed. Eventually, adoption of the new presentation format by the Bank of Russia will result in better understanding of the financial account items by most public information users, as a commonly accepted use of the mathematical signs will be employed. According to the new presentation design, within the financial account an increase of financial assets and liabilities will be reflected with a plus sign while a decrease — with a minus; within the current account further use of a minus sign for imports of goods and services as well as for recording of primary and secondary income payable will be precluded.

First publication of quarterly data under the improved international methodology is scheduled for June 29 (the full text of BPM6 in English is available on the IMF’s official website at http://www.imf.org/external/pubs/ft/bop/2007/bopman6.htm).

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27.06.2012 00.00.00