The overall balance of payments (BOP) position posted a deficit of $2.3 billion in September, higher than the $412 million BOP deficit recorded in the same month last year.

The BOP deficit in September reflected outflows arising mainly from the Bangko Sentral ng Pilipinas’ net foreign exchange operations and the National Government’s payments of its foreign currency debt obligations.

The BOP deficit in September brought the cumulative BOP level for January-September to $7.8 billion deficit, higher than the $665 million deficit recorded in the same period a year ago.

Based on preliminary data, this cumulative BOP deficit 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 declined to $93 billion as of end-September from $97.4 billion as of end-August.

Nonetheless, 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 6.6 times the country’s short-term external debt based on original maturity and 4 times based on residual maturity. BSP