By Luisa Maria Jacinta C. Jocson, A reporter
Balance of income PHILIPPINESments (BoP) posted the most money in September, the largest amount in nearly four years, the Bangko Sentral ng Pilipinas (BSP) said.
Data from the BSP showed the BoP cash surplus ballooned to $3.526-billion in September from $88 million in August. It was also a change from the $414-million defat the same time last year.
The September BoP also marked the largest monthly surplus in nearly four years or since $4.236 billion in December 2020.
“The BoP surplus in September 2024 reflected mainly the income from the National Government (NG) from foreign deposits into the BSP and the income from the BSP’s investments abroad,” the central bank said.
BoP measures national and international transactions. The surplus shows that more money came into the Philippines, while the defThis means that there is some money left over.
At the end of September, BoP refis read a fThe gross international reserve (GIR) level was $112.7 billion, up from $107.9 billion at the end of August.
Dollar reserves are sufficient to cover 4.5 times the country’s short-term external debt based on net maturity.
It also equated to 8.1 months worth of imports and the payment of services and basic income.
Adequate foreign exchange rate isfit protects the economy from market volatility and is a guarantee of the country’s ability to pay debts in the event of economic instability.
A YEAR TO TODAY
Meanwhile, the country’s BoP position registered more than $5.117 billion in the January-September period, up from a $1.736-billion surplus last year.
“Based on preliminary data, this balance of BoP has been collectedfled mainly by the reduced trade in goods deficit alongside the ongoing income from perremittances, exchange of resources, and borrowings from other countries by NG,” the statement said.
The latest data from the local statistics authority showed that the trade gap in the January-August period decreased by 4.35% to $34.3 billion from $35.86-billion deflast year.
“Furthermore, foreign direct and portfolio investment contributed to the BoP surplus,” the BSP added.
Separate data from the central bank reflected that trendfForeign direct investment decreased by 7.5% to $5.256 billion fIn the first seven months from $4.888 billion last year.
During that time, foreign portfolio investments have been very profitablefdown $1.998 billion in the January-August period, up 542.9% from $310.77-billionfdown last year.
Chief Economist Rizal Commercial Banking Corp. Michael L. Ricafort said the BoP surplus was found in the middle NG’s dollar bond yield ofa boat.
The government raised $2.5 billion in three U.S. dollar-denominated international bond issues at the end of August. This marked its second global commitmentfthis year.
Mr. Ricafort also noted the continued growth of remittances and the business process of income generation, among others.
“This is partly refit is getting a record GIR recently which is equal to more than 8 months of imports and more than double compared to the international rate of three to four months, thus it will basically provide a big loophole for the exchange rate of the peso,” he said.
Separate BSP data showed the country’s GIR rose to a record high of $112 billion at the end of September amid a surge in foreign deposits.
“The current account also has an impact on this as exports may accelerate and imports slow due to currency depreciation,” said John Paolo R. Rivera, senior researcher at the Philippine Institute for Development Studies, in a Viber statement.
Of fthe first half of the year, the current account of the country deficit stood at $7.1 billion, accounting for 3.2% of GDP. BSP expects current account defit reaches $6.8 billion this year, equivalent to 1.5% of GDP.
“Increase in income from foreign investments, remittancesfdecrease, the sale of goods may also have an impact on this,” said Mr. Rivera.
Mr. Ricafort said that the dollar is strongfa decline in the coming months may support the BoP. He also commented on the upcoming holiday season, which will boost remittances and exports.
By 2024, the BSP expects the country’s BoP position to end at a $2.3-billion surplus, equivalent to 0.5% of GDP.
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