The capital account, which turned positive in September following outflows in August, remained that way with US$3.2bn inflows. The strong monthly c/a surplus, combined with a positive capital account and minor outflows in net errors and omissions of US$-0.2 billion, resulted in an expansion of official reserves by US$4.9 billion in October.
In the breakdown of monthly data, residents’ movements (including outward FDI, financial assets held abroad etc.) posted US$8.2bn in outflows. Non-resident flows on the other hand strengthened further with US$11.4bn. A renewed appetite in foreign flows is attributable to: a) banks’ US$1.8bn Eurobond issuances, b) continuing domestic debt purchases of US$1.0bn, c) the Treasury’s US$1.7bn in external borrowing, and d) US$4.4bn net borrowing driven both by banks (more on the short-term). Accordingly, long-term debt rollover rates stood at 108% for corporates and 80% for banking (vs 113% and 139% respectively on a 12-month rolling basis).
