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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.
Free AccessMNI BRIEF: PBOC Increases Gold Reserves
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MNI UST Issuance Deep Dive: Dec 2024
Itaú Expect Current Account Deficit To Remain Contained
- Itaú note that the significant $1.1bn narrowing of the Q1 current account deficit from last year was mainly due to a lower trade deficit and the first services surplus since 2000, along with higher transfers and a lower income deficit. Exports were dragged mainly by coal exports, while imports continued to contract due to weak domestic demand. Meanwhile, the services balance swung to surplus thanks to an increase in tourism. Overall, the rolling-4Q current account deficit fell to 2.1% of GDP, from 2.5% in Q423.
- Financing of the CAD remained favourable, in Itaú’s view. They note that net foreign portfolio investment fell in Q1, while net direct investment reached $2.5 billion, taking the rolling-4Q total to $14.9bn, 185% of the current account deficit.
- Looking ahead, Itaú expect the current account deficit to widen slightly to 3.0% of GDP by the end of this year, as weak domestic demand helps to keep the deficit contained.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.