BSP revises 2012 BPO, GIR figures

The Bangko Sentral ng Pilipinas (BSP) has revised its 2012 figures for the country’s balance of payments (BOP) position and gross international reserves (GIR).

The country recorded a BOP surplus of $9.236 billion last year, up from $8.9 billion announced earlier last week, while reserves totaled $83.8 billion, down from $84.2 billion initially, BSP Governor Amando Tetangco Jr. said last Friday.

A BOP surplus indicates that we have more than enough resources to meet trade obligations and settle foreign debts. Reserves, on the other hand, serve as buffer funds in times of external shocks.

Both revised figures remained above BSP forecasts. The central bank had outlooks of $6.8 billion BOP surplus and $83 billion in reserves last year.

The latest numbers indicated the Philippines’ “strong external position,” Tetangco said in a speech before the banking community last Friday.

“This continues to enhance confidence in our ability to meet potential shocks,” he added.

He later on told reporters that BOP was revised to consider larger inflows last year for both the current and capital accounts. In particular, he pointed to higher remittances and portfolio placements.

Data showed remittances grew by six percent as of November last year, breaching BSP’s full-year projection of five percent. Foreign portfolio investments, meanwhile, posted a net inflow of $3.885 billion in 2012, beating the $3.2-billion forecast.

Remittances, together with export, tourism and business process outsourcing receipts, form part of the current accounts, while portfolio inflows and foreign direct investments pertain to capital accounts.

“There was an increase (in inflows) on the latter part of the year,” Tetangco pointed out.

As for the lower GIR, “revaluation of third currencies” against the US dollar trimmed the value of BSP’s currency holdings, he explained. This indicates currencies such as the Japanese yen weakened against the greenback.

Despite the revisions, Tetangco said the BSP is keeping its BOP and GIR outlooks for the year. It sees BOP surplus to narrow down to $3 billion, while reserves may hit a record of $86 billion.