Monthly developments in January 2003

Turning to seasonally adjusted data, the euro area current account showed a surplus of EUR 0.4 billion in January 2003 compared with a surplus of EUR 7.6 billion in the previous month. This change mostly resulted from an increase in income ebit flows and in the net current transfers deficit. The goods surplus registered a slight rise, since in January the value of exports increased somewhat more than that of imports. The services balance remained broadly unchanged. The developments in portfolio investment were primarily accounted for by large net outflows in debt instruments (EUR 29.0 billion). On the assets side, euro area investors were net buyers of EUR 25.3 billion of foreign bonds and notes and money market instruments. In contrast, a substantial net inflow of EUR 14.3 billion was recorded in equity portfolio investment. This resulted from net acquisitions of euro area equities by non-resident investors amounting to EUR 12.2 billion and net sales of foreign equities by euro area investors equalling EUR 2.1 billion. The other investment account was also close to balance in January 2003, as significant net outflows (of EUR 14.3 billion) from the other sectors into other investment assets (mostly deposits abroad by corporations and households) were counterbalanced by net inflows of short-term assets in the MFI sector. Template on international reserves and foreign currency liquidity

Additional information on the euro area b.o.p.

ECB Monthly Bulletin

Annexes

The euro area current account registered a deficit of EUR 6.4 billion in January 2003, compared with a close-to-balance position in January 2002. This development mainly resulted from a EUR 3.7 billion increase in the income deficit and from a reduction in the goods and current transfers surpluses (of EUR 2.0 billion and EUR 2.5 billion respectively). Conversely, the services deficit decreased by EUR 1.9 billion. In the financial account, combined direct and portfolio investment recorded net outflows of EUR 16.5 billion in January 2003, which mainly reflected sizeable net outflows in portfolio investment (EUR 14.7 billion). The direct investment account was close to balance in January 2003, with net outflows in direct investment abroad (in both equity and other capital) being largely offset by net inflows in direct investment in the euro area. Elsewhere in the financial account, net outflows of financial derivatives amounted to EUR 1.5 billion while reserve assets (excluding valuation effects) decreased by EUR 1.5 billion. The stock of the Eurosystem's reserve assets stood at EUR 363.4 billion at end-January 2003 (   ). The results up to January 2003 will also be published in the April 2003 issue of the . A detailed methodological note is available on the ECB's website. The next press release on euro area balance of payments will be published on 29 April 2003.

Table 1 Table 2

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: Monthly balance of payments of the euro area. : Euro area current account - seasonally adjusted data (Euro 12). Reproduction is permitted provided that the source is acknowledged