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

  • Russia promises support to ending Ukraine crisis
  • Busted valve delays water interruption
  • Cardinal Tagle decries human ‘commercialization’
  • Religion builds bridges in ethnically split Cyprus
  • Iran general urges Tehran to make new UN pick
  • Sports

  • Vettel hoping for resurgence at Chinese GP
  • MLB pitcher donates $100,000 for Sewol ferry victims
  • Hamilton takes pole at Chinese Grand Prix
  • Duke’s Rodney Hood joining Jabari Parker in NBA draft
  • Phelps entered in 3 events at comeback meet
  • Lifestyle

  • Levine designs womenswear with help from fiancee
  • Gabriel Garcia Marquez, Nobel laureate, dies at 87
  • Ford Mustang turns 50 atop Empire State Building
  • Pro visual artists, lensmen to judge Pagcor’s photo contest
  • ‘Labahita a la bacalao’
  • Entertainment

  • Myx TV premieres Asian American ‘docu-series’
  • A nutty finale for ‘Scandal,’ TV’s craziest show
  • EXO postpones release of mini album ‘Overdose’
  • ‘X-men’ filmmaker slams ‘fabricated’ sex attack claims
  • Singer Chris Brown’s bodyguard on trial in DC
  • Business

  • Fiat-Chrysler to produce iconic Jeep in China from 2015
  • US commerce secretary spells out economic facet of ‘pivot to Asia’
  • Italy sells luxury state cars on eBay
  • Asian shares mostly up in quiet trade
  • Dollar up in Asia on US jobs data, Ukraine deal
  • Technology

  • Nasa’s moon-orbiting robot crashes down
  • Netizens pay respects to Gabriel Garcia Marquez
  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Facebook rolls out ‘nearby friends’ feature
  • Netizens seethe over Aquino’s ‘sacrifice’ message
  • Opinion

  • Editorial cartoon, April 17, 2014
  • A humbler Church
  • Deepest darkness
  • ‘Agnihotra’ for Earth’s health
  • It’s the Holy Week, time to think of others
  • Global Nation

  • DOH to continue tracking co-passengers of OFW infected with MERS virus
  • 5 Filipinos with MERS in UAE reported in stable condition
  • PH boosts MERS monitoring after UAE nurse scare
  • Canadians back PH plea to take back waste
  • We treasure our Sierra Madre
  • Marketplace