The balance of payments (BoP) posted a surplus for August, latest data from the Bagko Sentral ng Pilipinas (BSP) showed.
BSP noted that the $657 million BoP surplus brought an aggregative surplus position of $4.77 billion.
However, the cumulative surplus proved to be lower than the $5.53 billion surplus in the same period last year.
“The current BoP surplus was supported mainly by foreign borrowings by the National Government along with lower net deficit in merchandise trade,” the BSP said.
Borrowings offset outflows
“These outcomes fully offset the impact of higher net outflows of foreign portfolio investments, and lower net inflows from foreign direct investments, trade in services and personal remittances,” it added.
Further, the central bank stressed that the latest BoP figure reflects another record high gross international reserves (GIR) of $98.95 billion.
High liquidity buffer
“At $98.95 billion, the GIR represents a more than adequate external liquidity buffer, which can cushion the domestic economy against external shocks,” it said.
“This is equivalent to 9.8 months’ worth of imports of goods and payments of services and primary income. Moreover, it is also about 9 times the country’s short-term external debt based on original maturity and 5.4 times based on residual maturity,” it concluded.