The overall balance of payments (BOP) position posted a deficit of $439 million in May, lower than the $1.6 billion BOP deficit recorded in the same month last year.

The BOP deficit in May reflected outflows arising mainly from 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 May, the cumulative BOP position registered a surplus of $2.9 billion in the first five months of the year. This level is a reversal from the $1.5 billion deficit recorded in the same period a year ago.

Based on preliminary data, this cumulative BOP surplus was partly attributed to net inflows from personal remittances, net foreign borrowings by the NG, trade in services, and foreign direct investments.

The gross international reserves (GIR) level decreased to $100.6 billion as of end-May from $101.8 billion as of end-April.

The latest GIR level represents a more than adequate external liquidity buffer equivalent to 7.4 months’ worth of imports of goods and payments of services and primary income. Moreover, it is also about 5.8 times the country’s short-term external debt based on original maturity and 4.1 times based on residual maturity. BSP