NASSAU, BAHAMAS — The Central Bank’s external reserves as of the beginning of this month were just over $3 billion, according to Central Bank Governor John Rolle.
During a press conference on the regulator’s Monthly Economic and Financial Developments report, Rolle said: “In the first quarter, the seasonal pattern of private-sector net contribution to gains in the Central Bank’s external reserves was also re-established, as commercial banks made a net sizable sale of foreign exchange to the Central Bank. This, added to proceeds from the Government’s foreign currency borrowing, boosted the reserves by $523 million over the quarter.”
“Taking net private sector receipts for April into account, the reserves as of the beginning of May were just above $3 billion,” he said.
“The Central Bank expects further seasonal accumulation in the external reserves over the remainder of the peak tourism months, before some reduction sets in over the second half of 2022. Nevertheless, we believe that conditions have improved enough, such that by the end of 2022, some net gains will remain in the reserves compared to the end of 2021. This is an upward revision to the forecast for the reserves.”
The regulator’s report noted the Central Bank’s net foreign currency purchase from the public sector expanded to $419.0 million, from just $4.4 million in 2021.
“The Bank’s transactions with commercial banks shifted to a net purchase of $93.2 million, from a net sale of $5.3 million in the preceding year,” the report read.
“The latter followed through from commercial banks’ net intake from their customers, which strengthened to $108.1 million from $15.9 million in the prior year. For the first quarter of 2022, external reserves expanded by $523.0 million, contrasting with the $129.9 million contraction in 2021.
“Contributing, the Central Bank’s net foreign currency transactions with the public sector reversed to a net purchase of $310.4 million, from a net sale of $74.3 million in the preceding year. Further, the Bank’s transactions with commercial banks switched to a net purchase of $212.5 million, after a net sale of $53.2 million in 2021.”
Rolle noted that in the financial sector, during the first quarter, the foreign currency inflows through commercial banks were almost two-thirds higher than were experienced in the same period of 2021.
