BOP surplus rose to $692M in June

Remittances, BPO investments continue to come in

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BSP Governor Amando M. Tetangco Jr. FILE PHOTO

Foreign money continued to flow into the Philippines even as short-term investors sold off their holdings of local stocks and bonds following the volatility in global financial markets in June, official data showed Friday.

The Bangko Sentral ng Pilipinas (BSP) reported that the country posted a balance-of-payments (BOP) surplus of $692 million for the month of June, the highest surplus since the $2.04 billion recorded last January.

This came despite the pullout of funds by foreign investors in the later weeks of June amid expectations that the US Federal Reserve would end its easy money policies.

BSP Governor Amando M. Tetangco Jr. said inflows of remittances from overseas Fil     ipino workers (OFWs) and revenues from the business process outsourcing (BPO) sector ensured that more money entered the economy than what came out.

The figure for June brought the total surplus for the first half to $2.58 billion, which means the economy is on track to meeting the official projection of a yearend surplus of $4.4 billion.

“Expected sustained inflow from remittances, BPO services and investments back up the full-year projection, which should in turn provide fundamental support for the peso,” Tetangco said in a statement.

Remittances and BPO revenues are two of the country’s biggest sources of foreign exchange income. Money sent home by OFWs is expected to grow 5 percent this year to $22.5 billion. BPO revenues are likewise seen growing to $16 billion this year from $13.5 billion in 2012.

Robust dollar income from both sectors more than offset the repatriation of foreign investors from portfolio holdings in the Philippines.

Latest data showed the Philippines had a net outflow of foreign portfolio investments, which refer to stocks, bonds and government securities, of $22.98 million in June. The net outflow in June was a result of the $397 million that left the country in the second, third and last weeks of June, eating up the inflow of $374 million in the first week of the month.

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  • joboni96

    kung hindi ba namang hunghang at kolonisadong utak
    mga doctorated financial leaders natin

    nabayaran na natin sana mga utang natin
    $84B (foreign reserves) – $61.7B (foreign debt) = $22 billion left foreign reserves

    still enough foreign reserves

    this will result to P367 billion more for government projects
    coming from the automatic 20% debt payments in the national budget

    yan ding P367 billion na iyan kaya takot at nakikinabang
    ang mga doctorated financial leaders sa mga foreign banks and capitalists

    mahina rin ang mga senador at congressmen natin
    kung naging project yang P367 billion na iyan every year

    at 30% commission rate
    that’s an additional more than P110 billion commission per year

    more chicks, more lands, more mansions, more businesses etc

    how about it mga honorable sirs
    lets retire our foreign debt

  • Gyrating Monkey

    OFW remittances should not be considered or rather included in gross domestic product. That money is consumer money. It’s just hard currency entering the system converted to peso papers for consumer use. 90% of that money immediately circulates through the local economy.

    • Chrisnadal19

      So ikaw na ang ekonomista? anu bang natapos mo?

      FYI its not part of GDP, if you know how to compute it. however, it’s incorporate in the GNP. Basic econ.

      Of course, the economy benefits from it which drives the services sector. But the remittances per se is not part of the GDP computation.

      • eight_log

        Hahahahaha … and the ekonomista speaks!!!!! A VERY BIG CHUNK OF OFW REMITANCES ARE USED FOR PERSONAL EXPENSES!!!!

        SA MAGALENG NA EKONOMISTA … HINDI BA PART NG GDP YAN???? HAHAHAHAHA….

      • Chrisnadal19

        yes, indeed. BS economics here.. kaw? And have you read this? Read first before you comment.

        “Of course, the economy benefits from it which drives the services sector”.

        Yes, it affects GDP, but the remittance data is not included in the computation — kahit anung approach – production, income, or expenditure.. sa pangalan plang Gross “Domestic” Product… Even in income approach computation — only income derived from production/services WITHIN the country are included.

        Go back to school kid.

      • eight_log

        Review your notes … kung meron ka … or baka naman absent ka noon nilecture yan … personal expenses is part of GDP … baka naman poro pamokpok lang alam mo … the good thing is that yung ibinbayad mo sa mg pokpok dyan sa Horizonplaza kung san ka tumatambay ay part ng GDP!!!!!

      • Chrisnadal19

        hahaha… if ur using the expenditure method.. but remember not all remittances are used for personal expenses.. that’s why the remittances figure is not used in the GDP computation.. kaw ata ang absent.. please check.. don’t use comments na bastos, it makes you look cheap and a loser… anyway, nice debating with a troll :)

      • eight_log

        Good thing alam pala ng ekonomista ang “bastos” … next pls don’t start injecting those when you reply to others … chances are you will get it back!!!!

  • oidkcin

    nakakalula ang mga figures, ang gusto ko lang e maging sapat ang kita ko sa anim na araw na 12-hour shifts na trabaho hahaha, kung meron.
    Impeach Aquino….& her brother.

  • eight_log

    All that BSP did was wait for the OFW remittances before calculating and announcing the balance of payment …. MAGALENG!!!!

    • Chrisnadal19

      really? have you worked there? or you are just wasting your time on a computer shop for 10/hour in a slum area.

      • eight_log

        Do I have to work there???? I just live in a slum area right next the bsp … and I can overhear your discussions … I only have to look at the opposite direction to return your volleys and hit it big!!!!

      • Chrisnadal19

        FYI there’s no slum right next to BSP.. haha. unless ur near pushing a trolly along harrison plaza or begging for food along roxas blvd.. hahha.. but probably your one of those illegal settlers in Zone 1, daming poks dyan.., just go home kid. unli ba yan or promo sa internet shop? haha.

      • eight_log

        Pumunta ka sa east avenue … lol. Tambayan mo pala ang Harizon Plaza … no wonder alam na alam mo ang pokpokan dyan. Mahiya ka naman …EKONOMISTA KA NG BSP nagpapotronize ng mga pokpok …. hahahaha!!! So alam na alam mo yung isang economic law ninyo dyan … when prices go up ../. your pants go down ….. Kaya dumarami ang corrupt!!!!!

      • Chrisnadal19

        the comment is for you.. don’t change the topic.. haha. wag kang pikon.

      • eight_log

        Ako pikon??? Lol … basahin mo nga mga pinost mo … nakakatawa ka naman!!!

      • Chrisnadal19

        not sure saan nakakataw dn.. anyway, i’m just talking with a neophyte economist wanna be.. xiao…

      • eight_log

        FYI .. I am not an economist … pero alam ko naman kung ano ang BOP (Blow-Off Preventer in my field of work). In a sense they are analogous … both are about balance of what is coming in and going out. Alam ko rin naman kung ano ang difference ng GDP sa GNP … in other words … hindi ako basta basta paloloko!!!!

      • Chrisnadal19

        “when prices go up ../. your pants go down” — catchy phrase btw.. thanks for the share eat-log.. bka marami mag like.

  • ting0508

    The Filipino industrialists should start putting up manufacturing companies again as domestic consumption is rising thus minimizing dollar outflow and creating more jobs that will directly result into a more vibrant economy.

  • warillaman

    It is good to know my hard earned money is benefitting my beloved country as well as my family, go, go, go, pinas!!

  • UrHONOR

    STEADY….steady she goes!

  • Guest

    Mr. Tetangco, you are being less than forthright again. BOP surplus may have risen to $692 million because the hot money that left our shores returned shortly thereafter. In our internal meeting last Thursday, you did warn all of us who were in that room that the true test will come when US Fed finally tapers off QE. We’ll never know the extent of how low our BOP will go until then. At least, that’s how you put it. My apologies for disclosing to the public what was discussed in private. The people have the right to know.

    • Chrisnadal19

      and then, you’re point is?

      do you have estimates on the outflow of foreign portfolio investments once this QE has ended? and how much are we talking about?

    • eight_log

      Takot lang masabon ang mga yan … kaya chances are they adjust the cut-off time of reporting to make things look good!!!!

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