Balance Of Payments Deficit Hits $53 Million

The country’s overall balance of payments (BOP) position posted a deficit of US$53 million in July 2023, lower than the US$1.8 billion BOP deficit recorded in the same month last year.

Photo Insert: The gross international reserves (GIR) level increased to US$100.0 billion as of end-July 2023 from US$99.4 billion as of end-June 2023.

The BOP deficit in July 2023 reflected net outflows arising mainly from the National Government’s (NG) payments of its foreign currency debt obligations.

Notwithstanding the deficit in July, the cumulative BOP position registered a surplus of US$2.2 billion in the first seven months of the year, which was a reversal from the US$4.9 billion deficit recorded in the same period a year ago.

Based on preliminary data, this development reflected mainly the improvement in the balance of trade and the sustained inflows from personal remittances, net foreign borrowings by the NG, trade in services, and foreign direct investments.

The gross international reserves (GIR) level increased to US$100.0 billion as of end-July 2023 from US$99.4 billion as of end-June 2023.

The latest GIR level represents a more than adequate external liquidity buffer equivalent to 7.4 months’ worth of imports of goods and payments of services and primary income. Moreover, it is also about 5.9 times the country’s short-term external debt based on original maturity and 4.1 times based on residual maturity.

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