Current account surplus down 8% in first 3 months

The country posted a surplus in its current account in the first quarter as foreign currency inflows exceeded expenditures for imported goods and debt payments.

The Bangko Sentral ng Pilipinas said the country’s current account came in at a surplus of $882 million in the first quarter. Still, it was 8 percent lower than the $960 million registered in the same period last year.

The central bank said the surplus in the current account in the first quarter, which it projected to be sustained throughout the year, indicated that the country remained sufficiently liquid in terms of foreign currency holdings.

Current account, a major component of balance of payments (BOP), is a record of the foreign currency inflows and outflows resulting from external trade (import payments and export earnings), remittances, service fees, tourism receipts, borrowings, debt payments and grants, among others.

“Current transfers during the quarter drew support from the steady remittance flows…driven by the sustained demand for Filipino manpower in various foreign labor markets,” the BSP said in the report.  Michelle V. Remo