Central Bank: External reserves contracted by $113 million in November
NASSAU, BAHAMAS — Total private sector areas fell by $23.8 million or three percent last month, according to the latest data from the Central Bank.
The regulator, in its Monthly Economic and Financial Developments report for November, noted: “Commercial banks’ credit quality indicators improved during the review month, as total private sector arrears reduced by $23.8 million (three percent) to $776.3 million, with the accompanying ratio moving lower by 36 basis points to 14.2 percent.”
The Central Bank noted that short-term arrears (31 to 90 days) contracted by $15.1 million or 4.9 percent to $294.6 million, with the attendant ratio declining by 25 basis points to 5.4 percent.
“Likewise, non-performing loans (NPL) fell by $8.8 million, 1.8 percent, to $481.6 million, with the associated ratio decreasing by 12 basis points to 8.8 percent — with reductions in NPL rates for consumer loans by 38 basis points to 7.4 percent, and mortgages by five basis points to 11.1 percent,” the Central Bank noted.
“However, the NPL rate firmed for commercial loans, by 25 basis points to 5.3 percent.”
The regulator also noted that the country’s external reserves contracted by $113 million to $2,475.4 million during November, extending the $100.4 million decline a year earlier.
“Reflective of this outturn, the Central Bank’s net sale to the public sector deepened to $50.8 million from $32.6 million in the preceding year,” the regulator noted.
“Meanwhile, the Central Bank’s net sale to commercial banks moderated to $61.2 million from $73.1 million.
“Further, commercial banks’ net outflows to their customers tapered to $53.8 million from $100.7 million in the prior year.”
It further noted: “Provisional data on foreign currency sales for current account transactions showed a $166.5 million growth in outflows to $647.6 million in November, relative to the same period of 2020, attributed to increases across almost all categories.
“The outturn reflected higher payments for ‘other’ current items, $56.1 million — mainly credit and debit card financed imports; non-oil imports, $48.2 million; and factor income payments, $42.9 million.
“Similarly, a rise in foreign currency sales was noted for oil imports, $28.3 million, and travel-related transactions, $4.5 million.
“In contrast, foreign currency sales for transfer payments decreased by $13.4 million.”
During the review month, the reduction in Bahamian dollar deposits extended to $48.6 million from $29.8 million in 2020.
“In particular, fixed deposit balances fell by $39.6 million, contrasting with a $1.9 million increase last year,” said the Central Bank.
“Likewise, the decline in savings deposits quickened to $21.7 million from $13.6 million a year earlier.
“Conversely, demand deposits grew by $12.6 million, a reversal from the $18.1 million decrease in the previous year. Similarly, foreign currency deposits advanced by $39.4 million, vis-à-vis an $18.6 million contraction.”
