BOP Position Hits $62 Million Surplus

The country’s overall balance of payments (BOP) position posted a surplus of US$62 million in July 2024, a reversal from the US$53 million BOP deficit recorded in July 2023.

The BOP surplus in July 2024 brought the year-to-date BOP level to a US$1.5 billion surplus.

The BOP surplus in July 2024 reflected inflows mainly from the net income of the Bangko Sentral ng Pilipinas’ (BSP) investments abroad and the National Government’s (NG) net foreign currency deposits with the BSP.

Meanwhile, the BOP surplus in July 2024 brought the year-to-date BOP level to a US$1.5 billion surplus, lower than the US$2.2 billion surplus recorded in January-July 2023.

Based on preliminary data, this cumulative BOP surplus mainly reflected the narrowing trade-in-goods deficit alongside continued net inflows from personal remittances, net foreign direct investment, trade in services, net foreign borrowings by the NG, and net foreign portfolio investments.

The BOP position reflects an increase in the final gross international reserves (GIR) level to US$106.7 billion as of end-July 2024 from US$105.2 billion as of end-June 2024.

The latest GIR level represents a more than adequate external liquidity buffer equivalent to 7.9 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.