According to BDL’s latest monetary report, the BOP recorded a cumulative deficit of $2.49B by June 2020, compared to a deficit of $5.39B by June last year. Accordingly, Net foreign Assets (NFAs) of BDL fell by $4.43B but the NFAs of commercial banks added $1.94B over the same period.
On a monthly basis, the BOP deficit stood at $295.8M, as NFAs of BDL fell by $555.8M and that of Commercial banks rose by $260.1M.
For a meaningful analysis, we scrutinize the NFAs of commercial banks which are in fact the difference between banks’ Foreign Assets (FA) and Foreign Liabilities (FL). For the month of June, the decline in FLs can be largely attributed to the reduction in the Non-resident customer deposits and Non-resident Financial sector liabilities by $744.28M and $148M. Meanwhile, the FAs decreased owing to the respective declines of $392.23M and $205.22M in the Loans to Non-resident customers and claims on the Non-resident Financial sector.
Meanwhile, the decline in BDL’s NFAs on a monthly basis is mostly attributed to the continued support of essential goods including basic food, medicines and fuel.
Balance of Payments (BoP) by June (in $M)
Source: BDL