The overall balance of payments (BOP) position posted a deficit of $2.7 billion in September, a reversal of the $24 million surplus recorded in the same period, the Bangko Sentral ng Pilipinas said Friday.

Outflows stemmed mainly from foreign exchange operations of the BSP and payments made by the National Government (NG) for its foreign exchange obligations. These were partially offset, however, by the net foreign currency deposits of the NG, the central bank added.

On a cumulative basis, the BOP registered a deficit of $5.14 billion during the period January-September 2018.

"The higher deficit may be attributed partly to the widening merchandise trade deficit (based on the Philippine Statistics Authority's preliminary data) for the first eight months of the year. This, in turn, was brought about mainly by the sustained rise in imports of raw materials and intermediate goods as well as capital goods to support domestic economic expansion," said the central bank

The reported BOP position is consistent with the final GIR level of $74.94 billion as of end-September.

At this level, the GIR is equivalent 6.8 months' worth of imports of goods and payments of services and primary income. It is also equivalent to 5.9 times the country's short-term external debt based on original maturity and 4.2 times based on residual maturity. DMS