The Philippines posted a $2-billion balance of payments (BOP) surplus in May 2024, rebounding from the $439-million deficit recorded in the same month last year, according to the Bangko Sentral ng Pilipinas (BSP).
“The BOP surplus in May 2024 reflected inflows arising mainly from the national government’s net foreign currency deposits with the Bangko Sentral ng Pilipinas which include proceeds from its issuance of ROP global bonds and net income from the BSP’s investments abroad,” the BSP said in a statement.
Data show that despite the uptick in May, the BOP surplus in the first five months declined to $1.6 billion this year from $2.9-billion surplus recorded a year ago.
The BSP said the continued BOP surplus was reflected by narrowing trade deficits in goods and continued inflows from personal remittances, foreign borrowings by the government, foreign direct investments, foreign portfolio investments and trade in services.
It also reflected an increase in the final gross international reserves (GIR) level to $105.0 billion as of end-May 2024 from $102.6 billion as of end-April 2024.
“The latest GIR level represents a more than adequate external liquidity buffer equivalent to 7.7 months’ worth of imports of goods and payments of services and primary income,” the BSP said.
It was also about 6.1 times the country’s short-term external debt based on original maturity and 3.8 times based on residual maturity.
The GIR tally was released as part of the balance of payments report for May 2024.