Overall BOP position posts $847m surplus in November 

December 19, 2018

Overall balance of payments (BOP) position yielded a surplus of $847 million in November, a reversal from the $44 million deficit in the same month last year, the Bangko Sentral ng Pilipinas (BSP) said Wednesday.

Inflows in November stemmed mainly from the BSP's foreign exchange operations and its income from its investments abroad during the month.

These were partially offset by the payments made by the national government for its foreign exchange obligations and its net foreign currency withdrawals during the month in review. 

Despite the surplus in November, the cumulative BOP position for the period January-November  registered a deficit of $4.75 billion, higher than the $1.78 billion BOP deficit recorded in the comparable period in 2017.

The higher cumulative BOP deficit for the period may be attributed partly to the widening merchandise trade deficit (based on the Philippine Statistics Authority's preliminary data) from January to October   brought about by sustained rise in imports of raw materials and intermediate goods as well as capital goods to support domestic economic expansion. 

The reported BOP position reflected the final GIR level of $75.68 billion as of end-November.

At this level, the GIR represents a more than ample liquidity buffer and is equivalent to 6.7 months' worth of imports of goods and payments of services and primary income. It is also equivalent to 5.6 times the country's short-term external debt based on original maturity and 3.9 times based on residual maturity. DMS