Overall BOP position posts $248 million surplus in July

August 19, 2019

The overall balance of payments (BOP) position posted a surplus of $248 million in July , a reversal of the $455 million BOP deficit in the same month last year.

Inflows in July  were reflected in the BSP's foreign exchange operations and income from its investments abroad as well as in the national government's  net foreign currency deposits.

These inflows were offset partially, however, by outflows which were reflected in the payments made by the national government on its foreign exchange obligations.

On a cumulative basis, the BOP position for the period January - July posted asurplus of $5.04 billion, a turnaround from the $3.71 billion BOP deficit recorded in January-July 2018.

The surplus may be attributed partly to remittance inflows from overseas Filipinos during the first half of the year and net inflows of foreign direct investments during the first five months of the year. 

The BOP position reflects the final gross international reserves (GIR) level of $85.18 billion as of end-July.

At this level, the GIR represents a more than ample liquidity buffer and is equivalent to 7.4 months' worth of imports of goods and payments of services and primary income.

It is also equivalent to 5.2 times the country's short-term external debt based on original maturity and 3.8 times based on residual maturity. DMS