External conditions remained firm during the year. Despite a reduction in the trade surplus, improved investment income and tourism receipts narrowed the current account deficit. As a result, the country’s gross foreign reserves increased by 10 percent to $ billion.
This level of reserves was sufficient to cover nearly 13 months of imports and is well above the CBSI’s precautionary import cover threshold of 6 months. Developments in the monetary sector also point to sustained growth. Broad money rose by 7 percent to $ billion due to increases in both net foreign assets and private sector credit.