PH payments position swings to surplus in June 2025

The Philippine payments position swung to a surplus in June due to the national government’s foreign currency deposits with the Bangko Sentral ng Pilipinas (BSP) and the central bank’s investments.

Data released by the BSP on Friday showed the country’s balance of payments (BOP) stood at a surplus of $226 million in June 2025.

This was a reversal from the $155-billion deficit recorded in June 2024.

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 surplus reflected the foreign currency deposits by the national government with the Bangko Sentral ng Pilipinas and income from BSP  investments,” the central bank said.

June’s BOP surplus narrowed the year-to-date deficit from $5.8 billion in January to May 2025 to $5.6 billion in January to June 2025.

“Preliminary data indicate that the year-to-date BOP deficit was largely due to the continued trade in goods deficit. This decline was partly offset, however, by the sustained net inflows from personal remittances from overseas Filipinos, foreign borrowings by the national government, and foreign portfolio investments,” the BSP said.

The BOP position mirrored the increase in the gross international reserves (GIR), which rose from $105.2 billion as of end-May 2025 to $106.0 billion by end-June 2025.

“The latest GIR level provides a robust external liquidity buffer, equivalent to 7.2 months' worth of imports of goods and payments of services and primary income,” the BSP said.

“Moreover, it covers about 3.4 times the country's short-term external debt based on residual maturity,” it added.

The GIR are made up of foreign-denominated securities, foreign exchange, and other assets including gold.

GIR helps a country finance its imports and foreign debt obligations, stabilize its currency, and provide a buffer against external economic shocks. — BAP, GMA Integrated News