Macro and Politics

* During the June 12 – 19 period, foreign investors recorded net purchases of USD465.7mn in the equity market and USD339.7mn in the bond market excluding repo transactions. This marked the strongest weekly foreign equity inflow since the week of April 17, while foreign demand for bonds extended into a second consecutive week. Over the same period, foreigners’ share in the total bond stock increased from 5.7% to 5.9%. During the same week, residents’ FX deposits (excluding gold and adjusted for EUR/USD parity effect) increased by USD870mn, while their total FX deposits (including gold and adjusted for price effect) rose by USD1.5bn. According to the CBT’s official reserve data, gross FX reserves increased by USD5.1bn to USD157.2bn during the June 12 – 19 period, while net FX reserves climbed by USD6.9bn to USD51.9bn. Over the same period, the swap stock rose by USD1.4bn to USD17.4bn, while net reserves excluding swaps improved by USD5.5bn, reaching USD34.5bn.