XINHUA – The Philippines’ overall balance of payments (BOP) posted a surplus of USD88 million in August this year, a reversal from a deficit of USD57 million in August last year, the country’s central bank said.
According to the latest data released by the central bank, the surplus reflected inflows mainly from net income from the central bank’s investments abroad.
The surplus brought the year-to-date level to USD1.6 billion, lower than USD2.1 billion recorded in January-August last year.
Based on the preliminary data, the cumulative surplus reflected mainly narrowing trade in goods deficit alongside continued net inflows from personal remittances, trade in services, net foreign direct investments, net foreign borrowings by the government and net foreign portfolio investments.
“The BOP position reflects an increase in the final gross international reserves (GIR) level to USD107.9 billion as of end-August 2024 from USD106.7 billion as of end-July 2024,” the central bank said. It added that the latest GIR level represents a more than adequate liquidity buffer equivalent to 7.8 months’ worth of imports of goods and payments of services and primary income.
Moreover, it is also about six times the country’s short-term external debt based on original maturity and 3.8 times based on residual maturity.
