Balance of payments – commentary

March 2026

The current account surplus amounted to CZK 5.9 billion in March. The goods and services balance ended in a surplus of CZK 52.0 billion. Direct investment dividends totalling CZK 30.7 billion were recorded on the debit side of the primary income balance. Income and capital transfers include a negative balance of transactions vis-à-vis EU institutions, totalling CZK 11.2 billion.

Current account
(CZK billions)
Balance of payments – monthly – chart 1 – Current account

Net capital inflows on the financial account (net borrowing) reached CZK 18.4 billion in March. Transaction growth in liabilities to non-residents reached CZK 86.5 billion, while growth in assets to non-residents amounted to CZK 68.1 billion. Foreign direct investment recorded a net capital inflow of CZK 9.6 billion, driven by both the balance of flows into equity capital (CZK 5.6 billion) and the balance of flows in debt instruments (CZK 4.0 billion). Portfolio investment recorded a net capital outflow of CZK 25.7 billion, with liabilities decreasing by CZK 18.7 billion due to transactions, while the volume of assets rose by CZK 7.0 billion. The outflow in portfolio investment was driven mainly by a decline in non-residents’ holdings of debt securities issued by domestic general government (CZK 35.0 billion). By contrast, non-residents’ holdings of investment fund shares within portfolio investment increased by CZK 17.5 billion. On the asset side, an increase was recorded in holdings of non-resident securities by other resident sectors (CZK 13.7 billion).

Direct and portfolio investment
(CZK billions)
Balance of payments – monthly – chart 2 – Direct and portfolio investment

Other investment recorded net capital inflows of CZK 61.4 billion amid transaction growth in both liabilities to non-residents (CZK 110.0 billion) and assets vis-à-vis non-residents (CZK 48.6 billion). On the liabilities side, an increase was recorded mainly in non-residents’ deposits with domestic banks (including the central bank), amounting to CZK 92.6 billion. Growth in liabilities was also driven by trade credits and advances of other sectors (CZK 10.2 billion). On the asset side under other investment, the increase was driven mainly by trade credits and advances of other sectors (CZK 23.3 billion) and by the rising volume of deposits of domestic commercial banks with non-residents (CZK 19.5 billion). International reserves increased by CZK 28.1 billion in March owing to transactions.