Bangko Sentral updates BOP components to meet intl standards

The Bangko Sentral ng Pilipinas is introducing changes to its measure of balance of payments (BOP) to comply with international standards, central bank officials bared Friday. Rosabel Guerrero, director for Bangko Sentral Department of Economic Statistics, said they have implemented  a new framework—in accordance with the Balance of Payments and International Investment Position Manual, 6th edition (BPM6)—in compiling and reporting BOP data. "This initiative is aligned with the international best practice of using the standards prescribed by the IMF (International Monetary Fund)," she said. "It takes into account economic developments associated with globalization," Guerrero added. Bangko Sentral Deputy Governor Diwa Guinigundo said the shift from the earlier method—BPM5—to BPM6 "will entail various phases of implementation to be completed by 2014. Among the changes are tweaks in the classification of financial instruments and institutional sectors, as well as restructuring of some components of the current account and additions of sub-classifications on transfers. The current account and capital and financial accounts make up the BOP. Additional sub-classifications are also being introduced under the capital and financial accounts. Generally, the capital and financial accounts consist of capital transfers, direct investments, portfolio and other forms of foreign investments. The BOP or payments position is a measure of a country's transactions with the rest of the world and comprised of money sent home by Filipinos abroad, external trade, and foreign investments. The Philippines recorded a $9.-billion BOP surplus in 2012. — VS, GMA News