The country’s overall balance of payments (BOP) position posted a surplus of $642 million in December 2023, higher than the $612 million BOP surplus recorded in the same month last year.
The BOP surplus in December 2023 reflected inflows arising mainly from the National Government’s net foreign currency deposits with the Bangko Sentral ng Pilipinas (BSP), net income from the BSP’s investments abroad, and the BSP’s net foreign exchange operations.
Meanwhile, the BOP surplus in December brought the full-year 2023 BOP level to $3.7 billion surplus, a reversal from the $7.3 billion deficit recorded in the same period a year ago.
Based on preliminary data, this development reflected mainly the improvement in the balance of trade alongside the higher net inflows from personal remittances, trade in services, and foreign borrowings by the NG. Further, net inflows from foreign direct investments contributed to the surplus, albeit lower during the period
The gross international reserves (GIR) level increased to $103.8 billion as of end-December 2023 from $102.7 billion as of end-November 2023.
The latest GIR level represents a more than adequate external liquidity buffer equivalent to 7.8 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.
