PH balance of payments posts $3.182 billion in surplus

MANILA, Philippines—The country’s balance of payments registered a surplus of $3.182 billion in July, up by 151 percent from $1.267 billion in the same month in 2011, the Bangko Sentral ng Pilipinas reported on Wednesday.

For the first seven months of this year, the BOP surplus stood at $4.498 billion, down by 28 percent from $6.283 billion in the same period in 2011.

The year-on-year growth in the BOP surplus during the month was credited partly to the increase in foreign portfolio investments, which were driven by the upbeat sentiment on the Philippines.

During the month, credit-rating firm Standard & Poor’s upgraded the Philippines’ credit rating from two notches to just one notch below investment grade. S&P cited the Philippine government’s improving fiscal condition, the growing economy, and the country’s rising foreign exchange reserves.

A balance of payment surplus happens when the foreign currency inflows exceed the outflows.