BOP posts $839 million surplus in February

MANILA, Philippines — The country enjoyed a surplus of $839 million in its balance of payments (BOP) position in February, 78 percent higher than the $467 million recorded in the same month last year as more dollars flowed into the country, according to the Bangko Sentral ng Pilipinas (BSP).

The BOP surplus in February reflected mainly the inflows arising from the national government’s foreign currency deposits as well as the BSP’s foreign exchange operations and income from its investments abroad.

However, the BSP said the inflows were partially offset by the payments made by the national government for servicing its foreign currency debt obligations.

The BOP is the difference in total values between payments into and out of the country over a period.

A surplus means more foreign exchange flowed into the country from exports, remittances from overseas Filipinos, business process outsourcing earnings and tourism receipts than what flowed out to pay for the importation of more goods, services and capital.

Despite the surplus in February, the Philippines still recorded a deficit of $516 million in the first two months, a reversal of the $3.17 billion surplus recorded in the same period last year.

“The deficit may be attributed partly to merchandise trade deficit and net outflows of foreign portfolio investments based on the latest available data,” the BSP said.

Latest data from the Philippine Statistics Authority (PSA) showed the country’s trade deficit narrowed by 26.3 percent to $5.16 billion in the first two months from $7.01 billion in the same period last year.

This after exports increased by 6.1 percent to $11.19 billion from January to February compared to $10.54 billion in the same period last year, while imports declined by 6.8 percent to $16.35 billion from $17.55 billion.

On the other hand, foreign portfolio investments or hot money recorded a net outflow of $446.04 million in the first two months compared to a net inflow of $1.15 billion in the same period last year.

According to the BSP, the BOP deficit in the first two months of the year reflects the final gross international reserves (GIR) level of $88.19 billion as of end-February.