Overall BOP position posts $1.36 billion deficit in January

February 19, 2020

The overall balance of payments (BOP) position posted a deficit of $1.36 billion in January, a reversal from the $2.7 billion BOP surplus in the same month last year, the Bangko Sentral ng Pilipinas (BSP) on Wednesday. 

The BOP deficit in January reflected mainly outflows from the National Government’s foreign currency withdrawals, which were used largely to pay its foreign currency debt obligations as well as net outflows in foreign portfolio investments. 

These outflows were partly offset, however, by inflows representing the BSP’s net foreign exchange operations and income from its investments abroad during the month in review.

The BOP position reflects the final gross international reserves (GIR) level of $86.87 billion as of end-January. 

This GIR level represents ample liquidity buffer equivalent to 7.6 months’ worth of imports of goods and payments of services and primary income. It is also equivalent to 5.4 times the country’s short-term external debt based on original maturity and  four times based on residual maturity.  DMS