External reserves decrease by $96.5M in August

NASSAU, BAHAMAS – The country’s external reserves decreased by $96.5 million in August, falling to just under $3 billion.

According to recent data from the Central Bank, this represents a significant drop compared to the $6.9 million decline during the same period in 2023.

In its monthly economic and financial developments report for August, the regulator noted: “During the review month, external reserves decreased by $96.5 million to $2,912.2 million, surpassing the preceding year’s decrease of $6.9 million.” The decline was attributed to the Central Bank’s net foreign currency transactions with the public sector, which reversed to a net sale of $23.9 million, compared to a net purchase of $18.8 million in 2023. Additionally, the Bank’s net foreign currency sales to commercial banks widened to $75.4 million from $24.6 million a year earlier. Similarly, commercial banks’ net foreign currency outflows to their customers grew by $11.3 million (15.1 percent) to $85.8 million compared to the same period last year.

On the tourism front, the Central Bank indicated that monthly data suggested sustained growth in the tourism sector during July, although with some moderation as trends normalized following the COVID-19 recovery period. Growth in total arrivals was primarily driven by an increase in sea traffic, while the high-value air segment showed a slight decline in performance.

According to Ministry of Tourism data, total arrivals grew to 1.1 million visitors in July, up from 0.9 million in the same month the previous year. This increase was supported by a 29.1 percent rise in sea arrivals, reaching 0.9 million. However, air arrivals declined by 1.7 percent to 0.2 million visitors, reflecting a slight moderation in bookings.

In the short-term vacation rental market, data from AirDNA showed that total room nights sold grew by 4.1 percent to 44,505 in August compared to the same period last year. Occupancy rates for hotel-comparable listings increased to 42.3 percent from 41.1 percent. In contrast, occupancy rates for entire place listings fell to 38.7 percent from 42.7 percent a year earlier. Additionally, price indicators revealed that the average daily room rate for entire place listings rose by 3 percent to $648.08, while the rate for hotel-comparable listings decreased by 3.5 percent to $173.44.