Balance of payments – commentary

October 2025

The current account surplus amounted to CZK 16.8 billion in October. The goods and services balance ended in a surplus of CZK 43.8 billion. Direct investment dividends totalling CZK 10.2 billion were recorded on the debit side of the primary income balance. Income and capital transfers included a surplus on transactions of CZK 6.8 billion vis-à-vis EU institutions.

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

Net capital outflows on the financial account (net lending) reached CZK 55.6 billion in October. Transaction growth in assets to non-residents amounted to CZK 40.5 billion. Liabilities to non-residents decreased by CZK 15.1 billion owing to transactions. Foreign direct investment recorded a net capital outflow of CZK 14.1 billion, mainly due to the balance of flows within inter-company debt instruments. (CZK 26.0 billion). Portfolio investment recorded a net capital outflow of CZK 45.8 billion, with assets increasing by CZK 21.1 billion owing to transactions and liabilities declining by CZK 24.8 billion. The outflow on the asset side was due mainly to growth in holdings of non-resident securities by resident banks (CZK 16.0 billion). On the liabilities side, it was caused mainly by a drop in non-residents’ holdings of debt securities issued by general government (CZK 32.7 billion).

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

Other investment recorded a net capital inflow of CZK 53.8 billion amid a transaction decline mainly in assets (CZK 54.1 billion). The largest movements on the asset side of the balance were recorded within deposits placed with non-residents by domestic commercial banks (CZK 30.9 billion) and other sectors (CZK 9.8 billion). Loans provided by commercial banks to non-residents also decreased (CZK 15.0 billion). On the liabilities side, non-residents’ deposits with domestic banks (including the CNB) declined by CZK 10 billion, while other liabilities of resident banks (excluding the CNB) to non-residents increased (CZK 7.9 billion). International reserves picked up by CZK 54.0 billion in October owing to transactions.