The country’s balance of payments (BOP) stood as a surplus of USD 2 billion in May, a reversal from the USD 439 million deficit recorded a year earlier.
The surplus, the Bangko Sentral ng Pilipinas said, reflected inflows arising mainly from the National Government’s (NG) net foreign currency deposits with the BSP, which include proceeds from its issuance of ROP global bonds, and net income from the BSP’s investments abroad.
The surplus in May brought the year-to-date BOP level to USD1.6 billion surplus, lower than the USD2.9 billion surplus recorded in January-May 2023.
Based on preliminary data, the cumulative surplus reflected the narrowing trade in goods deficit alongside the continued net inflows from personal remittances, net foreign borrowings by the NG, foreign direct investments, foreign portfolio investments, and trade in services.
The BOP position also reflects an increase in the gross international reserves (GIR) level to USD105 billion as of end-May 2024 from USD102.6 billion as of end-April 2024.
The GIR represents a more than adequate external liquidity buffer equivalent to 7.7 months’ worth of imports of goods and payments of services and primary income.
It is also 6.1 times the country’s short-term external debt based on original maturity and 3.8 times based on residual maturity.
