Developments in the external sector during the fourth quarter of 1989.

Abstract

The paper attempts to describe, in the fourth quarter, foreign exchange flows into and out of the economy.The pressure on the external sector eased considerably in the fourth quarter of 1989, as foreign exchange flows into and out of the economy resulted in a net inflow of $411.3 million, compared with net inflows of $229.2 million and $141.3 million in the preceding quarter of 1988 respectively. Foreign exchange flows through the Central Bank alone showed a net inflow of $498.9 million, compared with the net of inflow of $333.8 million and $44.8 million in the preceding quarter and the corresponding quarter of 1988, respectively. Total foreign exchange outflow from the economy amounted to $1,982.4 million, representing increases 21.9 and 45.2 percent over the levels in the preceding quarter and the corresponding quarter 1988, respectively. Outflow through the Central Bank totaled $1,601.1 million, showing increases of 26.4 and 37.8 per cent over the levels in the preceding quarter and the comparable quarter of 1988, respectively.