These findings generally suggest that market participants remain wary, and in that environment, improvements in financial markets are vulnerable to negative news on the economy or the extent of credit losses. I expect further, but gradual, improvement in financial markets.
However, due to the strong increase in receipts from the tourism sector and due to the large infrastructure projects gradually wind up, the current account deficit is expected to narrow in the medium term. Net outflows from foreign exchange reserves persist, but reserve levels remain stable due to short term reserve management activities and large inflows from public debt issuances.