BOP Position In Deficit

The country’s overall balance of payments (BOP) position posted a deficit of US$155 million in June 2024, lower than the US$606 million BOP deficit recorded in June 2023.

The latest GIR level represents a more than adequate external liquidity buffer equivalent to 7.7 months’ worth of imports of goods and payments of services and primary income.

The BOP deficit in June 2024 reflected outflows arising mainly from the National Government’s (NG) payments of its foreign currency debt obligations.

Despite the deficit in June, the cumulative BOP position registered a surplus of US$1.4 billion from January to June 2024, lower than the US$2.3 billion surplus recorded in the same period in 2023.

Based on preliminary data, this cumulative BOP surplus primarily reflected the narrowing trade in goods deficit alongside continued net inflows from personal remittances, trade in services, net foreign direct investments, net foreign borrowings by the NG, and net foreign portfolio investments.

The gross international reserves (GIR) level increased to US$105.2 billion as of end-June 2024 from US$105.0 billion as of end-May 2024.

The latest GIR level represents a more than adequate external liquidity buffer equivalent to 7.7 months’ worth of imports of goods and payments of services and primary income. Moreover, it is also about 6.0 times the country’s short-term external debt based on original maturity and 3.8 times based on residual maturity.