Payments position posts 7th monthly surplus in May —BSP

The Philippine balance of payments (BOP) position registered a surplus for the seventh consecutive month in May, the Bangko Sentral ng Pilipinas (BSP) reported on Wednesday.

Data released by the central bank showed the country registered a $928-million surplus in May, nearly double the $467-million surplus in April, and a reversal of the $583-million deficit in May 2018.

The BOP consists of 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 went out.

This is the seventh consecutive month that the country registered a surplus since November 2018 when it posted a $458-million surplus.

“Inflows in May 2019 stemmed mainly from the National Government’s (NG) net foreign currency deposits, and the BSP’s foreign exchange operations and income from its investments abroad,” the BSP said in an accompanying statement.

“These were offset partially, however, by the payments made by the NG for its foreign exchange obligations during the month in review,” it added.

This brought the year-to-date payments position to a surplus of $5.193 billion, compared with the $2.080-billion deficit in the same period last year.

“The surplus may be attributed partly to remittance inflows from overseas Filipinos during the first four months of the year, and net inflows of foreign portfolio, foreign direct and other investments in the first quarter of 2019,” the BSP said.

The latest BOP position reflects the final gross international reserves (GIR) level of $85.36 billion as of end-May 2019.

The BSP said this represents a “more than ample” liquidity buffer, and is equivalent to 7.4 months’ worth of imports of goods and payments of services and primary income.

It is also equivalent to 5.1 times the country’s short-term external debt based on original maturity, and 3.6 times based on residual maturity. —VDS, GMA News