NASSAU, BAHAMAS – The country’s external reserves decline slowed significantly in November, dropping by just $0.4 million compared to a sharp $30.6 million reduction in the same period in 2023, according to the Central Bank, reflecting a notable year-over-year reversal in foreign currency transactions.
In its monthly Economic and Financial Developments report for November 2024, the regulator noted that the decline in external reserves moderated considerably, primarily due to net foreign currency inflows from the private sector, which helped offset net public sector outflows.
The Central Bank explained: “During the review month, the decline in external reserves slowed to $0.4 million from $30.6 million in the previous year, bringing the ending balance to $2,706.4 million. Underlying this outcome, the Central Bank’s foreign currency transactions with commercial banks shifted to a net purchase of $9.0 million from a net sale of $48.9 million in the corresponding period in 2023. Similarly, commercial banks’ transactions with their customers reversed to a net intake of $20.0 million from last year’s net outflow of $30.1 million. Conversely, the Central Bank’s foreign currency transactions with the public sector moved to a net sale of $11.9 million from a net purchase of $17.0 million in the previous year.”
The report also highlighted provisional data on foreign currency sales for current account transactions, which showed an increase in monthly outflows by $10.1 million, totaling $565.8 million in November compared to the same period last year. Contributing factors included a $20.1 million rise in oil imports and a $9.0 million increase in non-oil imports. Additionally, outflows grew for travel-related transactions by $3.1 million and transfer payments by $2.2 million. In contrast, payments for “other” current items—primarily credit and debit card transactions—fell by $12.4 million, and factor income remittances declined by $11.8 million.
Regarding the broader economy, the Central Bank noted that in November, the domestic economy sustained its growth momentum, although at a more tempered pace compared to the previous year. Economic indicators continued to trend closer to their expected medium-term trajectory. The tourism sector showed continued expansion, though at a slower pace, with strong growth in the cruise segment offset by capacity constraints in the high-value-added stopover component.
On price developments, average consumer price inflation—as measured by the Retail Price Index (RPI) for The Bahamas—slowed during the 12 months to September 2024, relative to the same period in 2023, reflecting a moderation in price pressures for imported fuel and other goods and services.
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