The country’s balance of payments (BOP) position stood as a deficit of $57 million in August this year, lower than the $572 million BOP shortfall in the same month last year.
The BOP deficit in August reflected net outflows arising from the national government’s (NG) payments of its foreign currency debt obligations.
But notwithstanding the deficit in August, the cumulative BOP position registered a surplus of $2.1 billion in the first eight months of the year, or a reversal from the $5.5 billion deficit recorded in the same period a year ago.
Based on preliminary data, this development mirrors the improvement in the balance of trade and the sustained net inflows from personal remittances, trade in services, and foreign borrowings by the NG.The gross international reserves (GIR) level retreated to $99.6 billion as of end-August 2023 from $100.0 billion as of end-July 2023.
The GIR represents a more than adequate external liquidity buffer equivalent to 7.4 months’ worth of imports of goods and payments of services and primary income.
Moreover, it is also 5.7 times the country’s short-term external debt based on original maturity and 3.9 times based on residual maturity.
