The overall balance of payments (BOP) position posted a deficit of US$1.61 billion in May, higher than the $1.4 billion BOP deficit recorded in the same month last year.

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

The BOP deficit in May brought the cumulative BOP level for January-May to $1.53 billion deficit, lower than the $1.63 billion deficit recorded in the same period a year ago.

Based on preliminary data, this cumulative BOP deficit reflected the trade in goods deficit, which was partly offset by inflows such as from personal remittances, net foreign borrowings by the NG, foreign direct and portfolio investments.

The gross international reserves (GIR) level declined to $103.65 billion as of end-May from $105.4 billion as of end-April.

Nonetheless, the latest GIR level represents a more than adequate external liquidity buffer equivalent to 8.7 months’ worth of imports of goods and payments of services and primary income. Moreover, it is also about 7.4 times the country’s short-term external debt based on original maturity and 4.7 times based on residual maturity. BSP