Quantcast
Latest Stories

Country’s BOP stood at a surplus in April

Balance of payments still favorable, up by 7%

By

The country’s balance of payments stood at $1.084 billion in April, up by 7 percent from last year. AFP PHOTO

MANILA, Philippines—The flow of dollars and other foreign currencies into the country outstripped the outflows recorded in April, as remittances and portfolio investments remained robust.

The Bangko Sentral ng Pilipinas said the surplus in the country’s balance of payments (BOP) would further boost the country’s foreign exchange reserves, which had been hitting record levels in recent months.

BOP is the difference between inflows and outflows of foreign currencies.

On Thursday, the BSP reported that the BOP in April stood at a surplus of $1.084 billion, up by 7 percent from the $1.013 billion in the same month last year.

This brought the surplus in the first four months of the year to $4.577 billion—doubling the $2.289 billion registered in the same period a year ago.

Remittances from Filipinos working abroad continue to grow this year as demand by employers offshore remains significant.

Foreign portfolio investments, composed mostly of placements in stocks and bonds, also grew due to investors’ confidence in emerging economies in Asia.

Earlier, the central bank reported that the country’s gross international reserves (GIR) in April hit a new record high of $67.8 billion.

The reserves would be enough to cover 10.4 months’ worth of the country’s usual imports and would be equivalent to 6.1 times the country’s debts maturing within the short term.

GIR indicates a country’s ability to purchase imports, pay its debts to foreign creditors, and engage in other commercial transactions with the rest of the world.

The central bank considers the country’s current GIR level to be “comfortable,” and will help maintain confidence of creditors and bond investors in the country.

In November, international ratings agency Standard & Poor’s lifted the credit rating it assigned to the Philippines from BB- to BB, citing several factors, particularly the rise in the country’s foreign currency reserves. That rating is two notches below investment grade.

BSP Governor Amando Tetangco Jr. had said that the Philippines deserved better ratings, given its rising reserves of foreign currencies and the stability of its banking sector.


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: BOP , Investments , Remittances



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • Security in place for Obama as police hope for ‘peaceful’ visit
  • Retired SC justice Lorenzo Relova; 98
  • Ligots fight 2nd forfeiture case
  • PH will be partly cloudy in afternoon, evening—Pagasa
  • Ex-COA chief nabbed for plunder
  • Sports

  • Sharapova advances to Stuttgart quarterfinals
  • Galedo caps ride of redemption
  • Beermen, Express dispute second semis slot today
  • Lady Agilas upset Lady Bulldogs in four sets
  • NLEX roars to 7th D-League win
  • Lifestyle

  • ‘Recovered’ Banksy works on display ahead of sale
  • Marinduque: Visiting the ‘palm of the ocean’
  • First at Vatican in 60 years
  • How Jing Monis Salon gave Krissy the pixie
  • Want to be a supermodel? Work on your inner beauty, says Joey Espino
  • Entertainment

  • Paul McCartney to play at Candlestick concert
  • Kristoffer Martin: from thug to gay teen
  • Has Ai Ai fallen deeply with ‘sireno?’
  • California court won’t review Jackson doctor case
  • Cris Villonco on play adapted from different medium
  • Business

  • PAL hailed for ban on shark fin cargo
  • BSP to change tint of P100 bill
  • Nielsen sees car buying boom in the Philippines
  • How author of best-seller exposed ‘one percent’ economic elite
  • Bangko Sentral readies new bank lending rules
  • Technology

  • Cloud strength helps Microsoft earnings top Street
  • Vatican announces hashtag for April 27 canonizations
  • Enrile in Masters of the Universe, Lord of the Rings?
  • Top Traits of Digital Marketers
  • No truth to viral no-visa ‘chronicles’
  • Opinion

  • Editorial Cartoon, April 25, 2014
  • No deal, Janet
  • Like making Al Capone a witness vs his gang
  • MERS-CoV and mothers
  • A graduation story
  • Global Nation

  • Only 4 Etihad passengers not accounted for
  • Abandoned in Malta,15 PH seamen return
  • Senator hopes PH will also get same vow
  • HK victims to get P115M; traders raised money
  • Afghan hospital guard kills 3 US doctors, including Fil-Am pediatrician
  • Marketplace