PH dollar deficit continued for third straight month in January 2026

The Philippine balance of payments posted a deficit for the third straight month in January, data released by the Bangko Sentral ng Pilipinas (BSP) on Thursday revealed.

Central bank data showed that the BOP recorded a $373-million deficit in January, smaller than the $827-million deficit in December, and the $4.078-billion deficit in the same month last year.

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 gross international reserves (GIR) — made up of foreign-denominated securities, foreign exchange, and other assets such as gold — increased to $112.6 billion, which covers about 4.1 times the country’s short-term external debt based on residual maturity.

“This level of reserves remains an adequate external liquidity buffer, equivalent to 7.5 months’ worth of imports of goods and payments of services and primary income,” the BSP said in a statement.

The central bank earlier said it expects the BOP to post a $2.8-billion deficit or 0.5% of the gross domestic product this year, amid external challenges such as the global trade uncertainty, heightened geopolitical risks, and weakened investor confidence.—AOL, GMA Integrated News