Česká národní banka

Balance of payments

June 2018

The current account deficit amounted to CZK 1.6 billion in June. The goods and services balance recorded a surplus of CZK 34.1 billion. The liabilities side of the primary income balance included dividends on direct investment of CZK 26 billion. Primary and secondary income included a deficit of CZK 3.4 billion on transfers from the Czech Republic to the EU budget. On the capital account, a total of CZK 1.0 billion was drawn from the EU budget.

Current account

(CZK billions)

Balance of payments – monthly – chart 1 – Current account

The outflow of capital on the financial account (net lending) totalled CZK 15.1 billion owing to assets rising faster than liabilities. The net inflow of foreign direct investment was CZK 6.2 billion of which net reinvested earnings amounted to CZK 9 billion. The annual net direct investment inflow total was flat. The net portfolio investment inflow of CZK 89.1 billion (net borrowing) was affected on the liabilities side primarily by a rise in banks’ liabilities in the form of short-term bonds (amid a decrease in deposits accepted). The inflow of portfolio investment was partially offset by repayment of a government bond issued abroad amounting to EUR 2 billion. The annual net portfolio investment total switched to an outflow of capital in March, with the net outflow increasing further in June.

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 107.4 billion. The outflow of other capital was affected mainly by a change in the banking sector’s short-term international position. The outflow under other capital was partially offset by drawdown of a financial loan in the government sector. Transactions for CNB clients resulted in an increase in international reserves of CZK 4.7 billion (adjusted for valuation differences).