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The Philippine balance of payment (BOP) position swung into a deficit in October, the first in four months and the biggest in nine months, data released by the Bangko Sentral ng Pilipinas (BSP) on Tuesday showed. The BOP position stood at a $724-million deficit in October, reversing the $3.526-billion surplus in September, and the $1.
510-billion surplus in the same month of 2023. The payments position takes into account Philippine transactions with the rest of the world during a specific period. A surplus means more funds entered the country, while a deficit means more funds exited.
"The BOP deficit in October 2024 reflected the national government's net foreign currency withdrawals from its deposits with the BSP to settle its foreign currency debt obligations and pay its various expenditures," the central bank said in a statement. Latest data available from the Bureau of the Treasury (BTr) shows that the Philippines' sovereign debt ballooned to a fresh record-high of P15.893 trillion during the period, up 2.
2% from P15.55 trillion as of end-August 2024. The year-to-date BOP position stood at a $4.
393-billion surplus, higher than the $3.246-billion surplus recorded in the same period in 2023. "The surplus reflected in part the continued net inflows from personal remittances, trade in services, and net foreign borrowings by the national government.
Furthermore, net foreign direct and portfolio investments contributed to the BOP surplus," the BSP said. The latest position reflects a decrease in the final gross international reserves (GIR) level to $111.1 billion as of end-October 2024 from $112.
7 billion as of end-September, equivalent to an external liquidity buffer of 8.0 months' worth of imports of goods and payments of services and primary. It is also estimated at 4.
4 times the country's short-term external debt based on residual maturity. — VDV, GMA Integrated News.
