BOP position posts $1.57-B surplus in Dec.

THE COUNTRY’S fullyear 2019 balance of payments (BOP) surplus reached $7.84 billion, a turnaround from the $2.31 billion BOP deficit recorded in 2018. Based on preliminary data, the surplus was supported by higher net receipts of trade in services, personal remittance inflows from overseas Filipinos, and sustained net inflows of foreign direct investments and portfolio investments.

Likewise, the overall BOP position posted a surplus of $1.57 billion in

December 2019, lower than the $2.44 billion BOP surplus recorded in the same month last year. Inflows in December 2019 reflected the BSP’s net foreign exchange purchases from its foreign exchange operations and income from its investments abroad, and increase in the National Government’s (NG) net foreign currency deposits. These inflows were partially offset, however, by outflows representing payments made by the NG on its foreign exchange obligations during the month in review.

The BOP position reflects the final gross international reserves (GIR) level of $87.84 billion as of end-December 2019. At this level, the GIR represents a more-than-ample liquidity buffer equivalent to 7.7 months’ worth of imports of goods and payments of services and primary income. It is also equivalent to 5.5 times the country’s short-term external debt based on original maturity and 4.3 times based on residual maturity.