NASSAU, BAHAMAS — The country’s external reserves increased to $2.6 billion in March, though noticeably lower than the prior year’s growth which included proceeds from government’s external borrowings.
Central Bank Governor John Rolle yesterday noted, “As of the beginning of May, the external reserves measured approximately $2.7 billion, still a healthy position. On a seasonal basis, these balances are expected to peak later in the year, before being drawdown over the closing months of the year. The reserves are expected to end 2023 below their closing levels of 2022. This is in keeping with stronger private sector demand for imports of goods and services, some of which could be driven by expanded private sector credit.”
According to Central Bank in its monthly economic and financial developments report for March, the country’s external reserves grew by $4.1 million to $2,671.5 million, notably lower than the prior year’s growth of $513 million, which included proceeds from government’s external borrowings. The regulator also noted that its foreign exchange transactions with the public sector switched to a net sale of $93.2 million from a debt financing-related net purchase of $419 million in 2022.