Balance of payments – commentary

February 2024

The current account surplus amounted to CZK 39.2 billion in February. The goods and services balance ended in a surplus of CZK 58.6 billion. Direct investment dividends totalling CZK 6.4 billion were recorded on the debit side of the primary income balance. Income and capital transfers included a surplus of CZK 1.7 billion vis-à-vis EU institutions.

Current account
(CZK billions)

Net capital outflows on the financial account (net lending) reached CZK 20.6 billion in February, amid an increase in assets (CZK 5.7 billion) and a decrease in liabilities (CZK 14.9 billion) vis-à-vis the rest of the world. The net capital outflow within foreign direct investment was CZK 4.2 billion. Portfolio investment recorded a net capital outflow of CZK 7.2 billion, driven by a decline in short-term debt bonds of domestic banks held by non-residents (CZK 29.4 billion). This decline was partly offset by rising non-residents’ holdings of long-term bonds issued by domestic banks (CZK 18.4 billion).

Direct and portfolio investment
(CZK billions)

Other investment recorded an inflow of capital of CZK 6.9 billion which was associated with a faster decline in financial assets (CZK 27.7 billion) compared to the decline in liabilities (CZK 20.8 billion). On both sides of the balance sheet, the decline was driven predominantly by deposits of the domestic banking sector, with a decrease recorded on both the assets and liabilities sides vis-à-vis non-residents (of CZK 31.6 billion and CZK 27.3 billion respectively). On the liabilities side, the decline in total liabilities was offset by an increase in loans to residents from non-residents (CZK 18.9 billion). International reserves picked up by CZK 18.3 billion in February owing to financial transactions.