Recently published data by the Central Bank of Belize (CBB) shows that despite the precipitous drop in the Tourism sector’s foreign exchange (FOREX) inflows, overall balances remain relatively stable.

According to the CBB’s “Weekly Monetary Aggregates” for July 31^st 2020, the (overall) Net Foreign Assets of the Banking System amounts to approximately BZD $886.5 million (or USD 443.25 million). This figure, when compared to the overall figure for the same period last year (BZD $877.4), is up by just about one percent. A similar increase is observed even when viewed as year to date (YTD).

Signs of this slight increase were visible from May, when the CBB, in its Monthly Economic Highlight for that month, wrote: “The net foreign assets of the banking system rose by $6.6mn (0.8%) over the year to date after declining by $21.9mn in May.” The regulator added, “During the month, domestic banks’ foreign asset position weakened by $19.5mn with the collapse in tourism revenue because of the adverse impact of the Coronavirus disease 2019 (COVID 19) pandemic. Concurrently, Central Bank’s holdings dipped by $2.4mn mainly as a result of facilitating Central Government’s debt service payments.” Continue reading →