Close  

Govt’s foreign debt payments interrupt PH’s dollar inflow winning streak in June

By: - Reporter / @daxinq
/ 05:18 PM July 19, 2019
Govt’s foreign debt payments interrupt PH’s dollar inflow winning streak in June

INQUIRER.net stock photo

MANILA, Philippines – The Philippines broke its seven-month winning streak of net dollar inflows into the local economy after the national government made principal and interest payments to its foreign debts last month.

In a press statement, the Bangko Sentral ng Pilipinas said that the country’s overall balance of payments position posted a deficit of $404 million in June 2019.

ADVERTISEMENT

The balance of payments – the total net tally of dollar flows into and out of the Philippines for a given period due to trade and investments – has been on an uptrend since November 2018, being interrupted only last month.

The central bank pointed out, however, that last June’s net outflows were significantly lower than the $1.18-billion balance of payments deficit recorded in the same month last year.

FEATURED STORIES

“The substantial outflow in June 2019 stemmed from the principal and interest payments of the national government on its foreign exchange obligations,” the BSP said.

This outflow was partially tempered, however, by the government’s net foreign currency deposits, and the central bank’s foreign exchange operations, as well as income from its investments abroad during the month in review.

On a cumulative basis, the balance of payments position for the January-June 2019 period posted a

surplus of $4.79 billion – a turnaround from the $3.26-billion deficit recorded in the first half of 2018.

“The surplus may be attributed partly to remittance inflows from overseas Filipinos during the first five months of the year and net inflows of foreign direct

investments during the first four months of the year,” the BSP said.

The balance of payment position reflects the final gross international reserves level of $85.77 billion as of end-June 2019.

ADVERTISEMENT

At this level, the dollar reserves represent a “more than ample” liquidity buffer and is equivalent to 7.5 months’ worth of imports of goods and payments of services and primary income, the central bank said.

It is also equivalent to 5.1 times the country’s short-term external debt based on original maturity and 3.7 times based on residual maturity.

Read Next
LATEST STORIES
MOST READ
Don't miss out on the latest news and information.
View comments

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: Bangko Sentral ng Pilipinas, dollar, Duterte Administration, government debt payments
For feedback, complaints, or inquiries, contact us.
newsinfo

DOH shuns big pharma firms’ warning vs price cuts

December 15, 2019 05:25 AM

sports

Winning runner prefers napkin-padded ‘Nike’

December 15, 2019 05:15 AM

newsinfo

Faces of the News: Bono

December 15, 2019 05:10 AM



© Copyright 1997-2019 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.