The overall balance of payments (BOP) position posted a surplus of $2 billion in May, a reversal from the $439 million BOP deficit recorded in May 2023, the Bangko Sentral ng Pilipinas (BSP) said Wednesday.

The BOP surplus in May reflected inflows arising mainly from the National Government’s (NG) net foreign currency deposits with the Bangko Sentral ng Pilipinas (BSP), which include proceeds from its issuance of ROP Global Bonds, and net income from the BSP’s investments abroad.

Meanwhile, the BOP surplus in May brought the current year-to-date BOP level to $1.6 billion surplus, lower than the $2.9 billion surplus recorded in January-May 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, net foreign borrowings by the NG, foreign direct investments, foreign portfolio investments, and trade in services.

The BOP position reflects an increase in the final gross international reserves (GIR) level to $105 billion as of end-May from $102.6 billion as of end-April.

The latest GIR level represents a more than adequate external liquidity buffer equivalent to 7.7 months’ worth of imports of goods and payments of services and primary income.

Moreover, it is also about 6.1 times the country’s short-term external debt based on original maturity and 3.8 times based on residual maturity. BSP