The country’s overall balance of payments (BOP) position posted a deficit of $724 million in October 2024, a reversal from the $1.5 billion BOP surplus recorded in October 2023.

The BOP deficit in October 2024 reflected the National Government’s (NG) net foreign currency withdrawals from its deposits with the BSP to settle its foreign currency debt obligations and pay for its various expenditures.

Notwithstanding the deficit in October, the cumulative BOP position registered a surplus of $4.4 billion in January to October 2024. This is higher than the $3.2 billion surplus recorded in January to October 2023.

The surplus reflected in part 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 a decrease in the final gross international reserves (GIR) level to $111.1 billion as of end-October 2024 from $112.7 billion as of end-September 2024.

The latest GIR level represents a more than adequate external liquidity buffer equivalent to 8.0 months’ worth of imports of goods and payments of services and primary income.

It is also about 4.4 times the country’s short-term external debt based on residual maturity. Bangko Sentral ng Pilipinas