CNB commentary on the data published for August 2026
The current account deficit amounted to CZK 17.2 billion in August. The balance of goods and services ended in a surplus of CZK 19.3 billion. Foreign direct investment dividends totalling CZK 21.8 billion were recorded on the debit side of the primary income balance. Income and capital transfers include a deficit on transactions with EU institutions, totalling CZK 6.2 billion.
Net capital inflows on the financial account (net borrowing) reached CZK 1.4 billion in August. Transaction growth in liabilities to non-residents reached CZK 48.8 billion, while transaction growth in assets vis-à-vis non-residents amounted to CZK 47.4 billion. Foreign direct investment recorded a net capital outflow of CZK 9.6 billion, driven by a net capital outflow within debt instruments (CZK 24.1 billion). By contrast, transactions in shares and equity recorded a net inflow of capital (CZK 14.6 billion). Portfolio investment recorded a net capital outflow of CZK 18.0 billion amid transaction growth in both assets to non-residents (CZK 19.1 billion) and liabilities vis-à-vis non-residents (CZK 1.0 billion). The capital outflow was due mainly to an increase in holdings of equity and shares in non-resident entities (CZK 14.7 billion) by other resident sectors. Rising resident holdings of debt securities issued by non-residents (CZK 4.4 billion) also contributed to the outflow. On the liabilities side, a transaction decrease in non-resident holdings of bonds issued by resident banks (CZK 5.9 billion) was recorded, while non-resident holdings of bonds issued by general government increased (CZK 5.7 billion).
Other investment recorded a net capital inflow of CZK 36.2 billion amid transaction growth in liabilities to non-residents (CZK 32.0 billion) and, conversely, a transaction decrease in assets vis-à-vis non-residents (CZK 4.2 billion). The growth in liabilities under other investment was driven mainly by an increase in non-residents’ deposits with domestic banks (including the central bank), amounting to CZK 30.7 billion. On the asset side, declines were recorded in transactions involving loans from non-residents (CZK 2.5 billion) and deposits with non-resident entities (CZK 2.3 billion). International reserves picked up by CZK 13.1 billion in August owing to transactions.
| Key monthly BoP indicators (CZK bn) | August 2026 | July 2026 | August 2025 |
|---|---|---|---|
| current account balance | -17.2 | -34.2 | -8.8 |
| current account balance (12-month cumulated transactions) | -11.6 | -3.2 | 52.3 |
| net direct investment | 9.6 | 33.0 | 7.0 |
| net direct investment (12-month cumulated transactions) | 30.5 | 27.9 | -129.9 |
| net portfolio investment | 18.0 | -7.5 | 5.3 |
| net portfolio investment (12-month cumulated transactions) | 146.0 | 133.3 | -101.7 |