NASSAU, BAHAMAS — The country’s external reserves decreased by nearly $42 million in January to $2.4 billion, according to the Central Bank.
The regulator, in its Monthly Economic and Financial Developments Report for January, noted that during the review month, external reserves decreased by $41.7 million to $2.4 billion, but were lower than the $60.7 million reduction a year earlier.
“Underlying this outturn, the Central Bank’s transactions with commercial banks switched to a net purchase of $48.2 million, vis-à-vis a net sale of $32.8 million in the preceding year,” the regulator noted.
“Further, commercial banks’ net intake from customers broadened to $73.7 million from just $4.6 million in the same period of the previous year.
“Meanwhile, the Central Bank’s net sale to the public sector widened to $89.2 million from $29.9 million a year earlier.”
The Central Bank also noted that provisional data on foreign currency sales for current account transactions for the month of January revealed a $218.1 million expansion in outflows, to $556.2 million, vis-à-vis the same period of the preceding year, reflecting growth across almost all categories.
“Specifically, ‘other’ current items moved higher by $97.3 million — largely reflecting a rise in credit and debit card transactions — while non-oil imports and oil imports rose by $51.6 million and by $44.1 million respectively,” the report stated.
“Likewise, factor income payments grew by $23.4 million and travel-related transactions, by $3.2 million.
“Providing a modest offset, foreign currency sales for transfer payments decreased by $1.5 million.”
The report also noted that commercial banks’ credit quality indicators weakened during the month of January, largely attributed to a rise in non-performing loans (NPL).
“In particular, total private sector arrears rose by $5.3 million (0.7 percent) to $785.1 million, elevating the attendant ratio by 13 basis points to 14.4 percent,” the regulator noted.
“Disaggregated by the average age of delinquency, NPLs grew by $7.0 million (1.3 percent) to $534.9 million, resulting in the accompanying ratio moving higher by 15 basis points to 9.8 percent — with increases in the NPL rates for consumer loans by 29 basis points to 10.2 percent; mortgages by seven basis points to 11.0 percent; and commercial loans by seven basis points to 5.4 percent.
“In contrast, short-term arrears (31 to 90 days) declined by $1.7 million (0.7 percent) to $250.1 million, with the associated ratio narrowing by 2 basis points to 4.6 percent,” the regulator noted.
