The overall balance of payments (BOP) position posted a surplus of $3.5 billion in September , a reversal from the $414 million BOP deficit recorded in the same period last year.

The BOP surplus reflected inflows mainly from the National Government’s (NG) net foreign currency deposits with the Bangko Sentral ng Pilipinas (BSP) and net income from the BSP’s investments abroad.

Meanwhile, the surplus brought the year-to-date BOP level to US$5.1 billion surplus, higher than the $1.7 billion surplus recorded in January-September 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, and net foreign borrowings by the NG. Furthermore, net foreign direct and portfolio investments contributed to the BOP surplus

The BOP position reflects an increase in the final gross international reserves (GIR) level to $112.7 billion as of end-September from $107.9 billion as of end-August.

The latest GIR level represents a more than adequate external liquidity buffer equivalent to 8.1 months’ worth of imports of goods and payments of services and primary income.

Moreover, it is also about 4.5 times the country’s short-term external debt based on residual maturity. Bangko Sentral ng Pilipinas