May balance of payments down 46% to $75M surplus

The Philippines posted a $75-million surplus in its balance of payments for May, down 46 percent from the $138-million surplus for May 2012, according to data from the Bangko Sentral ng Pilipinas.

However, the amount brings the BOP for the first five months of the year to a surplus of $1.884 billion, 45 percent higher year-on-year from $1.302 billion.

BOP is the summary of transactions between the Philippines and the rest of the world. A surplus means more money entered the country, adding to its gross international reserves (GIR) and giving it the resources to settle external obligations and beefing up its foreign reserves position which serves as cushion against external shocks.

Citing preliminary data the central bank earlier reported that the GIR stood at $82.9 billion as of end-May, lower by 0.36 percent from the revised $83.2 billion in April.

The BSP said earlier that it might revise its projection of a $3-billion surplus for 2013's BOP, after January's BOP surplus reached $2.04 billion, up 136 percent from $864 million in January 2012. — BM, GMA News