BOP Shows US$62 Million Surplus in July 2024; Reserves Reach US$106.7 Billion

The Philippines recorded a balance of payments (BOP) surplus of US$62 million in July 2024, turning around from a deficit of US$53 million in the same month last year.

The July 2024 balance of payments (BOP) surplus was primarily supported by returns from the Bangko Sentral ng Pilipinas’ (BSP) overseas investments and the National Government’s (NG) net foreign currency deposits with the BSP.

For the year to date, the BOP surplus stands at US$1.5 billion, down from US$2.2 billion in the January-July period of 2023.

Preliminary data indicate that this reduction is linked to a narrower trade deficit in goods, along with sustained inflows from personal remittances, foreign direct investments, services trade, government borrowings, and foreign portfolio investments.

As of end-July 2024, the country’s gross international reserves (GIR) reached US$106.7 billion, up from US$105.2 billion in June. This reserve level is sufficient to cover 7.9 months of imports and payments for services and primary income.

Additionally, the reserves are around 6.1 times the country’s short-term external debt based on original maturity and 3.8 times based on residual maturity.

The BOP surplus and stable GIR level are key indicators of the country’s financial strength, reflecting positive foreign exchange inflows and external liquidity that support the Philippine economy amidst global uncertainties. (ASC)