MANILA (XINHUA) – The Philippines’ overall balance of payments (BOP) posted a surplus of USD2 billion in May 2024, a reversal from the USD439 million BOP deficit recorded in May 2023, the country’s central bank has said.
The Bangko Sentral ng Pilipinas (BSP) said in a press release on Wednesday night that it has attributed the BOP surplus in May to inflows arising mainly from the national government’s net foreign currency deposits with the BSP, which include proceeds from the Republic of the Philippines Global Bonds and net income from the BSP’s investments abroad.
“The BOP surplus in May 2024 brought the current year-to-date BOP level to a USD1.6-billion surplus, lower than the USD2.9 billion surplus recorded in January-May 2023,” said the BSP.
Based on preliminary data, the cumulative BOP deficit reflected mainly the narrowing trade in goods deficit alongside the continued net inflows from personal remittances, net foreign borrowings by the national government, foreign direct investments, foreign portfolio investments and trade in services, the central bank said.
The BSP said the BOP position reflects an increase in the final gross international reserves (GIR) level to USD105 billion as of end-May 2024 from USD102.6 billion as of end-April 2024.
It added that the latest GIR level represents a more than adequate external liquidity buffer equivalent to 7.7 months’ worth of imports of goods and payments of services and primary income.
Moreover, it is also about 6.1 times the country’s short-term external debt based on original maturity and 3.8 times based on residual maturity.
