Deposit bank reserves slipped in November

The latest International Financial Statistics publication from the International Monetary Fund show that total reserves held by deposit money banks slipped to CYP 1,147.9 mln in November 2004, from CYP1,279.8 mln in October. However, they were higher than the 1,128.6 mln recorded at the end of 2003.

Meanwhile, total foreign assets held by deposit money banks rose by CYP 279.6 mln in November to CYP 5,068.8 mln, while total foreign liabilities rose by CYP 193.8 mln to 5,614.3 mln.

This implies that net foreign assets improved from a negative CYP 631.3 mln in October to a negative CYP 545.5 mln in November.

We understand that the IMF definition of deposit money banks also includes the co-operative credit institutions.

The Financial Mirror, inferring from data by the Central Bank on foreign assets held by the commercial banks, concludes that the big foreign liabilities lie with the co-operative credit institutions.

The Central Bank data imply that the commercial banks have a positive net foreign asset position of around CYP 3.6 bln, while the co-operative credit institutions have a net negative position of around CYP 4.1 bln.