Česká národní banka

Balance of payments

August 2018

The current account deficit amounted to CZK 6.9 billion in August. The liabilities side of the primary income balance included dividends on direct investment of CZK 25.3 billion. The balance of goods and services showed a surplus of CZK 23.4 billion. Primary and secondary income included a surplus of CZK 1.2 billion on transfers from the EU budget to the Czech Republic.

Current account

(CZK billions)

Balance of payments – monthly – chart 1 – Current account

The inflow of capital on the financial account (net borrowing) totalled CZK 8.2 billion owing to liabilities rising faster than assets. The net foreign direct investment inflow of CZK 16.2 billion was due to the acceptance of loans within a direct investor’s group. Net reinvested earnings were CZK 8.8 billion. The net portfolio investment outflow of CZK 27.9 billion (net lending) was related on the liabilities side to a decrease in non-residents’ investment in government bonds.

Direct and portfolio investment
(CZK billions)

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

Other investment recorded an inflow of capital (net borrowing) of CZK 28.6 billion. The inflow of other capital was affected mainly by a change in the banking sector’s short-term international position. Transactions executed for CNB clients (adjusted for valuation changes) led to an increase in the CNB's international reserves of CZK 9.5 billion.