Overall BOP position posts $678 million deficit in July 

August 18, 2017

The country’s balance of payments (BOP) position in July posted a deficit of $678 million, higher by $109 million than the previous month’s shortfall of $569 million, the Bangko Sentral ng Pilipinas (BSP) said Friday.

This month’s deficit brought the year-to-date BOP deficit to $1.384 billion from the $706 million recorded during January to June.

The higher deficit was attributed to foreign exchange operations of the BSP and to payments made by the national government for its maturing foreign exchange obligations during the review month, the central bank said.

Outflows in July were partially tempered by net foreign currency deposits of the National Government and BSP’s income from investments abroad.

BSP’s foreign exchange operations remained driven by increasing market demand for foreign exchange largely to finance capital goods imports.

The BSP expects recovery in merchandise exports and higher-than-expected overseas remittances and BPO revenues would mitigate the current account and the overall balance of payments for 2017. BSP’s forecast balance of payments for 2017 is at a $500 million shortfall. DMS