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Czech net FDI negative at EUR 214.6mn in November 2013

January 21, 2014

Czech net foreign direct investment (FDI) showed a deficit of CZK 5.9bn ( EUR 214.6mn ) in November 2013 , wider than a gap of CZK 21.6bn a year ago due to acquisitions abroad, data from the central bank, CNB, showed. Of these reinvested earnings were roughly CZK 6.8bn. Foreign direct investments in domestic corporations totalled CZK 5.8bn in November, swinging from a negative CZK 735mn in October and versus CZK 19.7bn in the same month of the previous year. Czech companies invested CZK 11.7bn in November, well above the CZK 1.96bn invested a year ago. The net inflow of portfolio investment was affected mainly by an increase in investment by non-residents in resident debt securities denominated in the koruna. Other investment showed a surplus of CZK 157.3bn in November as a change in the international position of banks resulted in a capital inflow of CZK 159.4bn, due mainly to an increase in banks' short-term liabilities and a decrease in short-term foreign assets, CNB said. Foreign exchange interventions executed by CNB and transactions executed for CNB clients (adjusted for valuation changes) resulted in a CZK 165.9bn increase in the central bank's international reserves. Financial Account (CZKmn) 1.Direct investment -5 856,7 -38,5 -21 611,7 Abroad -11 671,5 696,7 -1 959,8 In the Czech Republic 5 814,8 -735,2 -19 651,9 2. Portfolio investment 30 169,4 -4 581,2 -12 872,5 3. Financial derivates 1 863,0 1 077,8 1 251,7 4. Other investments 157 327,3 -7 153,8 20 713,0 Source: Czech central bank

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Source: IntelliNews - Weekly Reports

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