| Foreign reserves rose by 1.5% m/m (EUR 196.5mn) to EUR 13.39bn as of end-April and the growth moderated from 3.2% m/m at the end of March, central bank data shows. The deposit of the government rose by 10.6% m/m indicating improving government finances though at a lower rate than in March. It accounted for 17% of the total foreign reserves as compared to 17.4% a year earlier and 15.6% at the end of March. The money in circulation and the holdings of other depositors went up by 1.5% m/m and 8.4% m/m, respectively, while the deposits of the commercial banks went down by 1.9% m/m. In annual terms, the reserves increased by 11.9%, accelerating from 8% y/y in March. Since the beginning of the year, foreign reserves have increased by 0.3%. IntelliNews comment: Improvement of foreign reserves is important for the stability of the currency board, especially given the plunging net FDI (which dropped by 77.5% y/y in Jan-Feb). It also gives investors confidence in the government's policy and its finances. |
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