The country’s international transactions or balance of payments (BoP) resulted in a $2.3-billion deficit in November, higher than the $216 million deficit recorded in the same month a year ago, as the national government incurred more debt.

The Bangko Sentral ng Pilipinas (BSP), however, on Thursday reported the country posted a $2.1-billion surplus in the first 11 months, down from a $3-billion surplus in the same period last year.

According to the Bureau of the Treasury, the national government already increased external debt by 3.5 percent to P5.13 trillion in October from P173.37 billion as of end-September.

“The BoP deficit reflected the national government’s net foreign currency withdrawals from its deposits with the BSP to settle its foreign currency debt,” BSP said.

The net foreign loan availments reached P20.47 billion after the peso weakened against the US dollar, which added P193 billion to the total external debt.

BSP also said income from services exports declined.

Remittances soften decline

“However, this decline was partly muted by the continued net inflows from personal remittances as well as net foreign portfolio and direct investments,” BSP said.

Personal remittances from overseas Filipinos grew by 2.7 percent to $3.42 billion in October from the $3.33 billion recorded last year.

Rizal Commercial Banking Corp. chief economist Michael Ricafort said remittances from overseas Filipinos could still grow by year-end as families back home seek funds to celebrate Christmas activities.

“Overseas Filipinos’ remittances are still growing on a monthly basis in view of the expected seasonal surge in remittances and conversion to pesos during the Christmas season in December, the biggest spending by households in a typical year,” he said.

Given the BoP deficit last month, the final gross international reserves level fell to $108.5 billion from $111.1 billion.

However, BSP said this level still indicates a more than adequate external liquidity buffer equivalent to 7.7 months’ worth of imports of goods and payments of services and primary income.