The Bangko Sentral ng Pilipinas (BSP) said the June BOP deficit reflected outflows arising mainly from the national government's payments of its foreign currency debt obligations.
Notwithstanding the deficit in June, the BSP said the cumulative BOP position registered a surplus of 1.4 billion dollars from January to June 2024, lower than the 2.3 billion dollar surplus recorded from January to June 2023.
Based on preliminary data, the BSP said the cumulative BOP surplus reflected mainly the narrowing trade in goods deficit alongside the continued net inflows from personal remittances, trade in services, net foreign direct investments, net foreign borrowings by the national government, and net foreign portfolio investments.
The BSP said the gross international reserves (GIR) level increased to 105.2 billion dollars as of end-June 2024 from 105 billion dollars as of end-May 2024.
It added that the latest GIR level 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.
Moreover, it is also about 6.0 times the country's short-term external debt based on original maturity and 3.8 times based on residual maturity.
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