BSP data: Balance of payments back to surplus in April

The Philippines' payments position posted a surplus for the first time this year in April, driven by the proceeds of the government's bond issuances.

Data released by the Bangko Sentral ng Pilipinas (BSP) showed that the balance of payments (BOP) position posted a $2.614 billion surplus in April.

This follows the deficit recorded in the three previous months -- $73 million in March, $2.019 billion in February, and $752 million in January.

April's figure is also higher than the $1.666 billion surplus recorded in the same month last year.

"The BOP surplus in April 2021 was attributed to inflows arising mainly from the proceeds of the national government's ROP Global and Samurai Bond issuances, which were deposited with the BSP," the central bank said an in accompanying statement.

Year-to-date, the BOP posted a $231-million deficit as of April, a reversal of the $1.598-billion surplus in April.

"Based on preliminary data, this cumulative BOP deficit was partly due to the country's merchandise trade deficit and net outflows of foreign portfolio investments," the BSP said.

The latest position reflects an increase in the final gross international reserves (GIR) level to $107.71 billion from $104.48 billion in March.

"The latest GIR level represents a more than adequate external liquidity buffer, which can help cushion the domestic economy against external shocks," the central bank said.

The buffer is equivalent to 12.3 months' worth of imports of goods and payments of services and primary income.

It is also about 7.4 times the Philippines' short-term external debt based on original maturity, and 5.1 times based on residual maturity. — RSJ, GMA News