NASSAU, BAHAMAS — The country’s external reserves reduced by just over $36 million in September to $2.7 billion, according to the Central Bank.
The regulator, in its Monthly Economic and Financial Developments report for September, noted that external reserves reduced by $36.4 million to $2,716.9 million, or $2.7 billion, extending the $21.5 million decline in the preceding year.
“Contributing to this outturn, the Central Bank’s transactions with the public sector reversed to a net sale of $12.3 million from a net purchase of $61.2 million a year earlier,” the regulator reported.
“Providing some offset, the Central Bank’s net sale to commercial banks tapered to $24 million from $83.3 million in 2020.
“Further, commercial banks’ net outflows to their customers moderated to $44 million from $82.1 million in the prior year.”
The Central Bank further noted: “During the nine-month period, underpinned by the receipt of proceeds from government’s external borrowing activities and SDRs allocation, external reserves expanded by $336.4 million, although lower than the $348 million increase registered in 2020.
“Underpinning this development, the Central Bank recorded a net purchase of $103.6 million from the public sector, but was notably below the $397.7 million growth in the prior year.”
According to the regulator, its net sale to commercial banks slowed sharply to $25.2 million from $129.8 million last year.
“In turn, the bank’s transactions with their customers reversed to a net purchase of $27.1 million, from a net sale of $200.2 million last year,” the Central Bank noted.
Provisional data on foreign currency sales for current account transactions also indicated that during the review month, outflows grew by $1.6 million to $473.8 million vis-à-vis the same period of last year.
“The outturn reflected higher payments for credit card transactions within ‘other’ current items ($52.8 million), oil imports ($26 million), non-oil imports ($10.2 million) and for travel-related transactions ($3 million),” the regulator noted.
“Partially offsetting, decreases were posted for factor income remittances ($88 million) and transfer payments ($2.4 million).”
It also noted: “During the nine months to September, foreign currency sales for current account transactions rose by $273.9 million to $4,202.6 million ($4.2 billion), in comparison to the same period last year.
“In particular, broad-based increases were registered for non-oil imports ($122 million), ‘other’ current items ($85.4 million), travel-related transactions ($22.7 million), transfer payments ($22.6 million), factor income ($12.9 million) and oil imports ($8.3 million) payments.”
