Posted 11/29/2023, 2:11:25 AM
Profit Outflows Undermine Reserves as Repatriation Surges 21x in October
- Repatriation of profits and dividends surged 21 times year-on-year to $272.5 million in October
- Outflow of $485 million in first 4 months of 2023-24 fiscal year undermines central bank efforts to preserve reserves
- October outflow was highest in 39 months; IMF talks seen as reason for relaxed controls
- Food, transport, financial, petroleum and power sectors saw large profit outflows compared to last year
- Decline of $216 million in central bank reserves recently due to debt servicing