PH dollar surplus in August hits $493M, says BSP

The Philippines posted a balance of payment surplus of $493 million in August 2019, largely due to remittances of OFWs and investments by fund managers and businessmen, according to the Bangko Sentral ng Pilipinas (BSP).

The surplus, however, was lower than $1.27 billion in the same month in 2018.

The BSP said the inflow of dollars was “offset partially” by foreign debt payments during the month.

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 rising since November 2018, being interrupted only last June.

On a cumulative basis, the balance of payments position for the Jan- Aug 2019 period registered a surplus of $5.53 billion, representing a turnaround from the $2.44 billion deficit in the first eight months of 2018.

The balance of payment position reflects the final gross international reserves level of $86.03 billion as of end-August 2019 which the BSP said was “more than ample liquidity.”

The amount of dollars covers seven-and-a-half months worth of imports and payments of services. It is also good for five-and-a-half months of foreign debt payments./TSB