BOP surplus widens to $3.4 billion in June

MANILA, Philippines — The Philippines posted a balance of payments surplus amounting to $3.4 billion in June, the largest in nearly two years, as government foreign borrowing and lower global oil prices helped strengthen the country’s external position.

Data from the Bangko Sentral ng Pilipinas (BSP) showed the surplus surged from $131 million in May and $226 million in June 2025. It was the highest monthly reading since September 2024.

The BOP summarizes the country’s economic transactions with the rest of the world. A surplus means more foreign currency flowed into the economy than flowed out during the period.

June also marked the second straight month that the country recorded a surplus after four consecutive monthly deficits from January to April.

The strong June result narrowed the cumulative BOP deficit to $3.88 billion in the first half from $7.28 billion as of end-May. It was also 30.6 percent smaller than the $5.59-billion shortfall recorded in the first six months of 2025.

“The year-to-date BOP position reflected the continued trade-in-goods deficit and net outflows from foreign portfolio investments,” the BSP said.

However, these were partly offset by “sustained net inflows from personal remittances of overseas Filipinos, foreign borrowings by the national government, trade in services and foreign direct investment.”

RCBC chief economist Michael Ricafort said the June improvement was largely due to proceeds from the national government’s $2.5-billion global bond issuance, which settled on June 24.

Lower global crude oil prices in the latter part of June also reduced pressure on the country’s import bill, helping narrow the trade gap and improve financial market conditions, Ricafort said.

He said continued inflows from overseas Filipino remittances, business process outsourcing revenues, tourism receipts and foreign direct investments also supported the BOP.

Meanwhile, gross international reserves inched up to $104.74 billion as of end-June, the highest in three months, from $103.99 billion in May.

The increase was mainly driven by the government’s net foreign currency deposits with the BSP and the central bank’s investment income abroad.

The reserve buffer was enough to cover 6.8 months of imports and was 3.7 times the country’s short-term external debt based on residual maturity.

The BSP expects the country’s BOP position to hit a $10.7-billion deficit this year, equivalent to 2.1 percent of gross domestic product. It also sees GIR at $104 billion by year-end.