Dollars from OFWs, BPOs, investors make up for growing trade gap losses

A strong inflow of dollars is helping the Philippines weather the impact of record levels of foreign exchange outflow due to a yawning trade gap and also helping create a favorable investment climate, according to a high-ranking central bank official.

“There is a positive story about the Philippines’ external payment position in that it has remained manageable despite the deficit in the current account,” said Diwa Gunigundo, deputy governor of the Bangko Sentral ng Pilipinas (BSP).

Gunigundo said the light at the end of the tunnel was courtesy of dollars from overseas Filipino workers, call centers and foreign direct investments.

Guinigundo — who will step down on Tuesday (July 2) upon reaching the mandatory retirement age of 65 — said a robust inflow of foreign exchange provided strong buffer against the shocks brought by a growing trade gap and other factors. (Editor: Tony Bergonia)