NASSAU, BAHAMAS- The Bahamas’ external reserves rose by $24.8 million in April— less than half the increase recorded a year earlier— as reduced foreign currency purchases and lower import-related outflows signaled a broad softening in external demand.
According to the Central Bank’s Monthly Economic and Financial Developments Report for April, the country’s external reserves grew to $2.82 billion, up from the previous month but significantly below the $64.8 million increase seen in April 2024. This slowdown reflects a marked tapering in foreign currency transactions between the Central Bank, commercial banks, and the public sector.
During the review period, the Central Bank’s net foreign currency purchases from commercial banks declined sharply to $29.1 million, a steep drop from $118.1 million a year earlier. Commercial banks also experienced a moderation in their net intake of foreign currency from customers, which fell to $21.3 million compared to $87.6 million in the same period last year. At the same time, the Central Bank’s net foreign currency sales to the public sector were significantly lower, dropping to $11.6 million from $61.8 million in April 2024.
These developments coincided with a notable contraction in foreign currency outflows related to current account transactions. Preliminary data revealed that monthly exchange control sales decreased by $187.7 million, falling to $578.8 million in April compared to the same month last year.
The decline in outflows was primarily driven by reduced spending on non-oil imports, which fell by $73.4 million. Additionally, outflows for “other” current items—mainly purchases financed by credit and debit cards—dropped by $61.1 million. Payments for oil imports decreased by $42.8 million, while travel expenses and factor income remittances declined by $7.7 million and $5.1 million, respectively. The only notable increase was in transfer payments, which rose by $2.4 million.
