NASSAU, BAHAMAS- The country’s external reserves declined by $11.7 million in May, according to the Central Bank’s Monthly Economic and Financial Developments report.
This development marked a significant reversal from the $169.5 million expansion observed in the previous year. Reflecting this development, the Central Bank reported a net sale of $24.7 million in foreign currency transactions with the public sector, compared to a net purchase of $159 million in 2023. Conversely, transactions with commercial banks showed a net inflow of $17.1 million, contrasting with an outflow of $8.5 million the previous year. Commercial banks also increased net sales to their customers to $34 million from $6.4 million a year earlier.
Provisional data on foreign currency sales for current account transactions indicated a contraction of $207.0 million (25.5 percent) to $605.2 million in May compared to the same period the previous year. The report highlighted reductions in outflows for “other” current items, non-oil imports, oil imports, factor income remittances, and transfer payments. Outflows for travel-related expenses grew by $3 million compared to May 2023.
Despite moderated growth, the Central Bank noted that the domestic economy sustained momentum in May, with economic indicators approaching expected medium-term potential. Tourism continued to show robust growth, supported by gains in both high-value-added air travel and sea components, driven by sustained demand from key source markets.
Loading ...
