NASSAU, BAHAMAS — The country’s external reserves grew to $2.6 billion in July supported by foreign currency inflows through the private sector and further proceeds from the government’s external borrowings, according to data released by the Central Bank.
According to the regulator’s monthly economic and financial development report for July, external reserves grew by $36.7 million to $2,612.8 million during the month of July, a turnaround from the $45.5 million reduction in the previous year.
“In particular, the Central Bank transactions with commercial banks shifted to a net purchase of $21.5 million, from a net sale of $65.1 million in 2020,” the regulator noted.
“Commercial banks, in turn, recorded a net intake of $20.4 million from their customers, following a net sale of $58.8 million in the prior year. Moreover, the Central Bank’s net purchase from the public sector continued at $15.3 million vis-à-vis $18.5 million last year.”
The regulator added: “Preliminary data on foreign currency sales for current account transactions revealed a $118.7 million growth in outflows to $461.7 million in July, in comparison to the same period in 2020.
“The outcome reflected increased payments for ‘other’ current items ($56.2 million) — mainly credit and debit card-financed imports; factor income payments ($31.9 million); oil imports ($18.1 million); non-oil imports ($14.8 million); and travel-related payments ($6.5 million). In contrast, transfer payments declined by $8.8 million.”
The regulator announced this week that it has received a $247 million boost to its external reserves through a special International Monetary Fund (IMF) facility.
It noted that in an effort to assist countries in their response to COVID-19 shocks, the IMF on August 23 allocated $456 billion in Special Drawing Rights (SDR) to its entire membership of countries, in proportion to their shareholding. Those SDRs, equivalent to US$650 billion, can be used unconditionally.
The Bahamas received an allocation of SDR $174.8 million, which added approximately US$247.5 million to the international reserves of the Central Bank.
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