Česká národní banka

Balance of payments

March 2018

The current account deficit amounted to CZK 5.6 billion in March. The goods and services balance recorded a surplus of CZK 38.2 billion. The debit side of the primary income balance included dividends on direct investment of CZK 38.1 billion. Primary and secondary income included a deficit of CZK 0.7 billion on transfers from the Czech Republic to the EU budget. The annual current account surplus total has been decreasing.

Current account

(CZK billions)

Balance of payments – monthly – chart 1 – Current account

The inflow of capital on the financial account (net borrowing) totalled CZK 4.2 billion owing to assets declining faster than liabilities. The net foreign direct investment outflow reached CZK 5.8 billion. Net reinvested earnings were CZK 8.3 billion. The annual net direct investment inflow total has been declining slightly in recent months. The net portfolio investment inflow of CZK 159.6 billion (net borrowing) was affected on the liabilities side primarily by a rise in banks’ liabilities in the form of short-term bonds.

Direct and portfolio investment
(CZK billions)

Balance of payments – monthly – chart 2 – Direct and portfolio investment

Other investment recorded a capital outflow (net lending) of CZK 176 billion. The other capital outflow was due chiefly to a change in the short-term international position of the banking sector (a decrease in short-term liabilities). Transactions for CNB clients resulted in a decrease in international reserves of CZK 26.5 billion (adjusted for valuation differences).