The Philippines posted a balance of payments (BOP) surplus of US$82 million in September, according to the Bangko Sentral ng Pilipinas (BSP). While positive, the figure is significantly lower than the US$3.5 billion surplus recorded in the same month last year.
The BOP is a summary of the country’s transactions with the rest of the world. A surplus means more money flowed into the country than out during the period.
According to the BSP, the September surplus was driven mainly by income from the central bank’s investments abroad and foreign currency deposits made by the national government.
The latest figure helped slightly narrow the country’s year-to-date BOP deficit to US$5.3 billion from the US$5.4 billion shortfall recorded from January to August this year.
Preliminary data show that the persistent trade deficit in goods remains the main reason for the overall BOP deficit. This happens when the economy buys more than it sells to markets abroad. From January to August 2025, the country’s trade deficit stood at US$32.4 billion, slightly lower than the US$34.3 billion posted in the same period last year.
This was partly offset by continued inflows from overseas Filipinos’ remittances, exports of services, foreign investments, and borrowings by the national government.
The BOP position also reflected an increase in the country’s gross international reserves (GIR), which rose to US$109.1 billion as of end-September from US$107.1 billion a month earlier.
The BSP said the current GIR level remains a strong buffer against external shocks. It is enough to cover 7.3 months’ worth of imports and payments for services and income, and is about 3.8 times larger than the country’s short-term foreign debt due within the next 12 months.
The GIR includes foreign currencies, gold, and other external assets, which help the country pay for imports and foreign debts, stabilize the peso, and cushion the impact of global economic uncertainties.
