The overall balance of payments (BOP) position posted a deficit of $155 million in June, lower than the $606 million BOP deficit recorded in June 2023, the Bangko Sentral ng Pilipinas (BSP) said Friday.

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

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

Based on preliminary data, this cumulative BOP surplus reflected mainly the narrowing trade in goods deficit alongside the 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 $105.2 billion as of end-June from $105 billion as of end-May.

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 times the country’s short-term external debt based on original maturity and 3.8 times based on residual maturity. BSP