The country’s balance of payments (BOP) position posted a surplus of USD2.1 billion in the first 11 months of 2024, a turnaround from last year when this stood as a deficit of USD2.3 billion, latest data from the Bangko Sentral ng Pilipinas (BSP) show. The surplus, while lower than the USD3.0 billion posted during the same period last year, reflects a continued favorable trend in the country’s external financial position.
The November deficit, which widened from USD216 million in November 2023, was attributed to the national government’s (NG) net foreign currency withdrawals to meet foreign debt obligations and finance other expenditures. Additionally, the BSP’s foreign exchange operations contributed to the deficit. However, this shortfall was offset by steady inflows from personal remittances, as well as foreign portfolio and direct investments.
Despite the November setback, the country’s gross international reserves (GIR) remained a strong cushion, declining slightly to USD108.5 billion as of end-November from USD111.1 billion a month earlier. This level still provides a robust external liquidity buffer, equivalent to 7.7 months’ worth of imports and more than four times the country’s short-term external debt.
The overall BOP surplus highlights the country’s resilience in managing external shocks and underscores the BSP’s role in stabilizing the nation’s foreign currency position, even as the government navigates fiscal challenges.
