The Philippines’ balance of payments (BOP) posted a deficit of $59 million in May, raising the total deficit in the first five months to $136 million.
The BOP records the transactions that the country does with the rest of the world.
BOP data are tracked closely to ensure that the supply of dollars in the economy remains ample to allow the government as well as businesses to transact internationally.
According to Diwa C. Guinigundo, Deputy Governor of the Bangko Sentral ng Pilipinas, the BOP results in May were mainly due to the foreign exchange operations of the BSP and foreign exchange payments by the government on its maturing obligations.
Guinigundo told reporters these factors drove BOP results even as these were cushioned by the national government’s foreign exchange deposits as well as BPS’s investment income from abroad.
“These bookings must have been driven by merchandise trade as imports continue to increase on account of good growth numbers,” he said.
Last week, Guinigundo said the BSP expects the BOP position settling at a deficit of $500 million at the end of the year, such that it will be the second straight year that more dollars would leave the country than come in.