Oct 182013

MANILA, Philippines – The country’s balance of payments (BOP) position reverted to a surplus in September amid the return of foreign portfolio and direct investments into the country, the Bangko Sentral ng Pilipinas (BSP) reported yesterday.

The country posted a surplus of $465 million in September, a turnaround from the $318-million deficit in August.

The latest surplus, however, was 38 percent lower than last year’s $751-million surplus.

“BOP position for September… (was) on account of continued inflow of foreign exchange from different sources particularly foreign portfolio and direct investments,” BSP Deputy Governor Diwa C. Guinigundo said in a text message.

“Data for exports, remittances and BPO (business process outsourcing) receipts are still not available although initial indicators show their continued strength,” he added.

“These inflows were supported by BSP investment income from abroad and NG (national government) deposits of FX (foreign exchange) with the BSP,” Guinigundo further said.

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The BoP position summarizes a country’s transactions with the rest of world. This includes exports, imports, foreign direct and portfolio investments, other investments, and even remittances from Filipinos abroad.

A surplus means more funds went into the country, while a deficit means otherwise.

In the nine months to September, the country’s BoP surplus declined 34 percent to $3.824 billion from $5.831 billion a year ago.

The central bank expects a surplus of $4.4 billion in the country’s BOP for this year.

Guinigundo earlier said this projection is under review in light of latest developments that could affect financial markets globally.

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