NASSAU, BAHAMAS — The country’s external reserves contracted by nearly $65 million during the month of May according to the Central Bank, which noted that the reduction represented a switch from the growth of nearly $127 million a year earlier.
In its monthly economic and financial developments for May 2022, the regulator noted: “During the review month, external reserves contracted by $64.6 million to $3,002.1 million, a switch from a growth of $126.6 million a year earlier. Reflective of this outturn, the Central Bank’s transactions with the public sector reversed to a net sale of $154.8 million from a net purchase of $102.7 million in the previous year.
“By contrast, the Central Bank’s net purchase from the commercial banks broadened to $88.2 million from $15.3 million in the preceding year. Further, commercial banks net intake from their clients widened to $102.3 million from $16.2 million in the prior year.”
The report also noted that provisional data on foreign currency sales for current account transactions showed that monthly outflows increased by $51.3 million to $599.2 million in May, relative to the same period in 2021.
“Specifically, payments for non-oil imports moved higher by $33.9 million and “other” current items—primarily credit and debit card financed imports—by $29.9 million. Further, outflows for oil imports grew by $5.1 million and travel-related transactions, by $2.3 million. Conversely, decreases were posted for factor income, by $16.6 million and transfer payments, by $3.4 million.”
The regulator also noted that during May, commercial banks’ credit quality indicators improved, reflective of a decline in short-term arrears. Notably, total private sector arrears decreased by $28.3 million (3.9 percent) to $697.3 million, with the attendant ratio narrowing by 55 basis points to 12.8 percent.
On the tourism front, the regulator noted that on a year-to-date basis, total arrivals rebounded to 1,933,351, compared to 184,685 in the corresponding 2021 period, when a decline of 89.1 percent was registered.
“Underlying this outturn, the air segment rose to 466,896 passengers, a reversal from a 53.1 percent contraction in the preceding year, reflecting a rise in traffic to all major markets. Similarly, sea arrivals increased to 1,466,455 visitors, following a decrease of 98.4 percent in 2021,” the Central Bank noted.