By means of Luisa Maria Jacinta C. Jocson, Reporter
The wage balance of the PhilippinesThe positions (BoP) showed a surplus in September, the largest in almost four years, the Bangko Sentral ng Pilipinas (BSP) said.
BSP data shows the BoP rose to a surplus of $3.526 billion in September, up from $88 million in August. It was also a turnaround from $414 millionFin the same period a year ago.
September’s BoP also marked the largest monthly surplus in almost four years, or since $4.236 billion in December 2020.
“The BoP surplus in September 2024 mainly reflected inflows from the national government’s net foreign currency deposits with the BSP and net income from the BSP’s investments abroad,” the central bank said.
The BoP measures a country’s transactions with the rest of the world. A surplus shows that more money has come to the Philippines, while a theFicit means there is more money left.
At the end of September the BoP was reFread one FThe final gross international reserve (GIR) level is $112.7 billion, up from $107.9 billion at the end of August.
The dollar reserves were enough to cover 4.5 times the country’s short-term foreign debt, based on the remaining maturity.
It also corresponded to 8.1 months of imports of goods and payments for services and primary income.
An ample level of foreign exchange buFFers protects an economy from market volatility and is a guarantee of the country’s ability to pay off debts in the event of an economic downturn.
YEAR TO DATE
Meanwhile, the country’s BoP position recorded a surplus of $5.117 billion in the January-September period, up from the surplus of $1.736 billion a year earlier.
“Based on preliminary data, this cumulative BoP surplus is reFmainly had to do with the restrictive trade in goods deficit in addition to the continued net inflow of personal remittances, trade in services and net foreign borrowing by the NG,” the report said.
The latest data from the local statistical authority shows that the trade gap narrowed by 4.35% to $34.3 billion from $35.86 billion in the January-August period.FIT a year ago.
“In addition, net foreign direct investment and portfolio investment contributed to the BoP surplus,” the BSP added.
Separate data from the central bank showed this was a net gainFBottom line foreign direct investment rose 7.5% to $5.256 billion in the US Ffirst seven months, compared to $4.888 billion a year earlier.
Meanwhile, foreign portfolio investments delivered a net gainFlow of $1.998 billion in the January-August period, up 542.9% from the net $310.77 billion in the January-August period.Flows from a year ago.
Michael L. Ricafort, chief economist of Rizal Commercial Banking Corp., said the BoP surplus ballooned during this period the proceeds of the last dollar bond of the NG oFfering.
The government raised $2.5 billion from issuing US dollar-denominated global bonds in three tranches at the end of August. This was the second global bond issueFoffer this year.
Mr Ricafort also noted continued growth in revenues from remittances and business process outsourcing, among others.
“This is partly correctFrecently recorded the record GIR equivalent to more than eight months of imports and more than double the international standard of three to four months, which would essentially provide a greater cushion for the peso exchange rate,” 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 currency deposits.
“The current account has also contributed to this as exports may have accelerated and imports have slowed due to the depreciation of the currency,” said John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, in a Viber message.
In the Ffirst half of the year, the country’s current account theFicit amounted to US$7.1 billion, accounting for 3.2% of GDP. The BSP expects the current account to…FThis year it is expected to reach $6.8 billion, equivalent to 1.5% of GDP.
“Increase in income from foreign investments, remittances inFAt the low point, asset sales may have also contributed,” Mr. Rivera added.
Mr Ricafort said the dollar has strengthenedFlows in the coming months could further support the BoP. He also pointed to the upcoming holidays, which would boost remittances and exports.
For 2024, the BSP expects the country’s BoP position to end up at a surplus of $2.3 billion, equivalent to 0.5% of GDP.