GERMAN SECURITIES PURCHASES SET RECORD IN JANUARY
Purchases of West German bonds in
January reached a record 13 billion marks' worth as a result of
investment from other European countries amid expectations of a
European Monetary System realignment, the Bundesbank said.
    This produced a surplus in the securities item of the
long-term capital account of 11.17 billion marks and was the
primary contributor to a 10.15 billion surplus in the total
capital account, turning round December's 6.48 billion deficit.
    In January last year, the capital account, combining long
and short-term flows, showed a surplus of 2.27 billion marks,
the Bundesbank said.
    The Bundesbank said foreign purchase of German shares in
January was, by contrast to the massive bond investments, only
about 200 mln marks worth, while overseas purchases of
"Schuldschein" promissory notes fell by 500 mln from December.
    The long-term account in total showed a surplus of 11.17
billion marks, reversing the 2.60 billion deficit in December
and up from a surplus of 9.37 billion in January, 1986.
    Among other items, direct domestic investment abroad posted
an outflow of 2.86 billion marks after a deficit of 4.98
billion in December and a surplus of 1.13 billion in January
last year.
    The Bundesbank confirmed earlier figures from the federal
statistics office that the current account surplus in January
fell to 4.86 billion marks from 8.47 billion last year.
    The trade surplus in the month was down to 7.20 billion
from 11.57 billion in December.
    In the invisibles account, the surplus on services was 100
mln marks, turning round a deficit of 500 mln marks in
December. The balance on payments transfers narrowed to a
deficit of 2.40 billion marks from 2.70 billion.
 REUTER
