Česká národní banka

Balance of payments

November 2018

The current account surplus was CZK 8.7 billion in November, owing to a surplus on the goods and services balance. The debit side of the primary income balance included dividends on direct investment of CZK 17.8 billion. The goods and services balance recorded a surplus of CZK 36.7 billion. Primary and secondary income included a deficit of CZK 3.8 billion on transfers from the Czech Republic to the EU budget. On the capital account, a total of CZK 0.1 billion was drawn from the EU budget.

Current account

(CZK billions)

Balance of payments – monthly – chart 1 – Current account

The inflow of capital on the financial account (net borrowing) totalled CZK 1.0 billion owing to liabilities rising faster than assets. The inflow of foreign direct investment reached CZK 11 billion. Net reinvested earnings amounted to CZK 8.8 billion. The annual net direct investment inflow total was flat. The inflow of portfolio investment amounting to CZK 35.3 billion (net borrowing) was affected on the liabilities side by growth in investment by non-residents in bonds issued by banks and corporations.

Direct and portfolio investment
(CZK billions)

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

Other investment recorded an outflow of funds (net lending) of CZK 48.8 billion. The other capital outflow was due chiefly to a change in the short-term international position of banks (a decline in short-term liabilities and a rise in short-term assets). Transactions for CNB clients resulted in an increase in international reserves of CZK 1.3 billion (adjusted for valuation differences).