The shortfall created by the country’s foreign currency spending versus its foreign currency earnings moderated to only $148 million in April from the year ago deficit of $415 million.
The shortfall, referred formally as a deficit in the balance of payments (BOP) by the monetary authorities, reflect outflows arising for the most part from servicing the debt obligations of the national government.
“Notwithstanding the deficit in April, the cumulative BOP position registered a surplus of $3.3 billion in the first four months of the year. This level is markedly higher than the $79 million surplus recorded in the same period a year ago.
“Based on preliminary data, the cumulative BOP surplus reflected inflows that stemmed mainly from personal remittances, net foreign borrowings by the NG, and foreign direct investments,” the Bangko Sentral ng Pilipinas (BSP) said.
The gross international reserves (GIR) level, an indication of capacity to pay for trade and debt obligations, increased to $101.8 billion as of end-April 2023 from $101.5 billion as of end-March 2023.
The latest GIR level represents a more than adequate external liquidity buffer equivalent to 7.6 months’ worth of imports of goods and payments of services and primary income.
Moreover, it is also about six times the country’s short-term external debt based on original maturity and 4.1 times based on residual maturity.
