Balance of payments position swings to surplus in June
Balance of payments position swings to surplus in June
Manila, Philippines – The country’s balance of payments (BOP) swung to a surplus of $226 million in June, buoyed by remittances and borrowings, the Bangko Sentral ng Pilipinas (BSP) said on Friday, July 18.
The June BOP position, which accounts for the transactions of the country with the rest of the world, reverses the $155-billion deficit year-on-year, the BSP data showed.
“The BOP surplus reflected the foreign currency deposits by the national government (NG) with the Bangko Sentral ng Pilipinas (BSP) and income from BSP investments,” the BSP said in a statement.
The June surplus helped narrow the year-to-date deficit to $5.6 billion for the first half, from the $5.8 billion in January to May, owing to the “continued trade in goods deficit,” the central bank said.
“This decline was partly offset, however, by the sustained net inflows from personal remittances from overseas Filipinos, foreign borrowings by the NG, and foreign portfolio investments,” it added.
The BOP position mirrored the increase in the gross international reserves (GIR), which rose from $105.2 billion as of end-May to $106.0 billion by end-June.
The latest GIR level provides a robust external liquidity buffer, equivalent to 7.2 months worth of imports of goods and payments of services and primary income.
GIR are made up of foreign-denominated securities, foreign exchange, and other assets, including gold. The reserves help a country finance its imports and foreign debt obligations, stabilize its currency, and provide a buffer against external economic shocks.
Business News Anchor Lois Calderon contributed to this story.
