The country’s overall balance of payments (BOP) position posted a surplus of $88 million in August 2024, a reversal from the $57 million BOP deficit recorded in August 2023. The BOP surplus in August 2024 reflected inflows mainly from the net income from the Bangko Sentral ng Pilipinas’ (BSP) investments abroad.
The BOP surplus in August 2024 brought the year-to-date BOP level to $1.6 billion surplus, lower than the $2.1 billion surplus recorded in January-August 2023. Based on preliminary data, this cumulative BOP surplus reflected mainly the narrowing trade in goods deficit alongside the continued net inflows from personal remittances, trade in services, net foreign direct investments, net foreign borrowings by the National Government (NG), and net foreign portfolio investments.
The BOP position reflects an increase in the final gross international reserves (GIR) level to $107.9 billion as of end-August 2024 from $106.7 billion as of end-July 2024. 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.
