The overall balance of payments (BOP) position posted a surplus of $711 million in October , albeit lower than the $1.1 billion BOP surplus recorded in the same month last year, the Bangko Sentral ng Pilipinas (BSP) said Friday.

The BOP surplus for the month reduced the cumulative BOP deficit in January-October to $7.1 billion from a deficit of $7.8 billion in the first three quarters of the year.

The BOP surplus in October reflected inflows arising mainly from the National Government’s net foreign currency deposits with the Bangko Sentral ng Pilipinas.

Meanwhile, the current year-to-date BOP level, which is a reversal from the $476 million surplus recorded in the same period a year ago, reflected the widening trade in goods deficit as goods imports continued to surpass goods exports on the back of the persistent surge in international commodity prices and resumption in domestic economic activities.

The gross international reserves (GIR) level increased to $94 billion as of end-October from $93 billion as of end-September. The latest GIR level represents a more than adequate external liquidity buffer equivalent to 7.5 months’ worth of imports of goods and payments of services and primary income.

Moreover, it is also about 6.9 times the country’s short-term external debt based on original maturity and 4.1 times based on residual maturity. BSP