Central bank: BOP deficit more than doubles in 2017
THE country’s balance of payments (BoP) reverted to a surplus in December, the Bangko Sentral ng Pilipinas (BSP) reported on Friday, but the full more than double the 2016 shortfall.
December’s $ 917- million surplus reversed the $44-million and $214-million shortfalls recorded in November and a year earlier. It was also the largest since February 2015 when the payments position stood at a surplus of $985 million.
mainly from foreign exchange operations of the BSP, net foreign currency deposits of the national government, and and income from the BSP’s investments abroad,” the central bank said in a statement, adding that these were partially offset by payments made by the national government for maturing foreign exchange obligations.
Notwithstanding the surplus, the million, wider than the $420 million recorded in the same period last year. It was, however, lower than Bangko Sentral’s $1.4-billion forecast.
The central bank said the higher largely brought about by a merchandise the year as well as a reversal in foreign
Foreign portfolio investments ended
“Higher prepayments made by the public and private sectors to nonresident creditors on their medium quarters of the year also contributed
bank added.
Sought for comment, Land Bank of the Philippines market economist Guian Angelo Dum driven mainly by the gradual interest rate normalization of the US Federal Reserve.
“The accompanying appreciation of the dollar because of the US central bank’s policy tweaks is also putting pressure on the country’s BoP by slashing some amount from the country’s gross international reserves,” he added.
For 2018, the payments bal of $1 billion due to an expected
The current account deficit is expected to widen to $ 700 million, mainly due to faster growth in imports of goods compared to exports and notwithstanding increases in the services and secondary income accounts.
Exports are projected to grow by 9.0 percent while inbound shipments are expected to continue growing by 10 percent.