Global transactions posted a surplus in July at $62 million, a reversal from the $53 million deficit recorded in the same month last year by the Bangko Sentral ng Pilipinas (BSP).

“This reflected inflows mainly from the net income from BSP’s investments abroad and the national government’s net foreign currency deposits with the BSP,” the central bank’s report said Monday.

These are part of the country’s balance of payments (BoP) or international transactions which consist of income from exports and payments for imports, capital fund transfers, and investments in businesses, real estate, bonds and stocks.

7-month number falls

From January to July, the BOP surplus declined to $1.5 billion from $2.2 billion, as recorded in the same period a year ago.

The BSP said the decline was tempered by lower payments to imports at $25 billion in the first half of the year, down from $27.6 billion based on data from the Philippine Statistics Authority.

Gross international reserves as of July increased to $106.7 from $105.2 billion, providing the country with a more than adequate external liquidity buffer to cover 7.9 months’ worth of imports of goods and payments of services and primary income.

Moving forward, Rizal Commercial Banking Corp. chief economist Michael Ricafort said the BoP surplus might be sustained due to cheaper imports.

“There could be a still narrowing trend of the country’s trade deficit as seen in recent months as global crude oil prices still among 2.5-year lows and still relatively lower global prices of other imported commodities,” he said.

Ricafort also said the government expects proceeds from foreign currency-denominated loans of around $3 billion out of its total $5-billion debt program for this year.