After recording unexpected net outflows in June, the Philippine economy experienced net dollar inflows for the second consecutive month in August, buoyed by remittances from overseas Filipino workers as well as short- and long-term equity investments made by fund managers and businessmen during the period.
In a statement, the Bangko Sentral ng Pilipinas (BSP) said the country’s overall balance of payments position posted a surplus of $493 million in August 2019 which was, however, lower than the $1.27-billion surplus registered in the same month last year.
“Inflows in August 2019 were reflected in the national government’s net foreign currency deposits and BSP’s income from its investments abroad,” the BSP said. “These inflows were offset partially, however, by outflows representing payments made by the national government on its foreign exchange obligations during the month in review.”
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 June.
On a cumulative basis, the balance of payments position for the January-August 2019 period posted a surplus of $5.53 billion, representing a turnaround from the $2.44-billion deficit recorded in the first eight months of 2018.
“The surplus may be attributed partly to remittance inflows from overseas Filipinos during the first seven months of the year, and to net inflows of foreign direct investments and portfolio investments during the first half of the year,” it said.