MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) is reviewing forecasts for foreign direct and portfolio investments, remittances, and other balance of payments components to take into account the latest developments that could affect inflows of capital into local financial markets.
BSP Deputy Governor Diwa C. Guinigundo told reporters the central bank has already started reviewing projections for the country’s balance of payments (BOP) position.
“We are reviewing that now. Not only the overall balance of payments, the current accounts, financial and capital accounts, but also the components,” Guinigundo said.
The central bank revisits its forecasts for said indicators twice a year, usually in April and in October.
The revised figures following the second review, meanwhile, are announced in November or in December.
The review will take into account developments that could impact capital inflows to the country, along with remittances.
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The balance of payments position is a summary of a country’s transactions with the rest of the world. Its components include imports of goods and services, merchandise exports, foreign direct investments, hot money, remittances, and other investments.
Latest central bank data showed the country has seen a BOP surplus of $3.359 billion in the eight months to August, already 76 percent of the BSP’s full-year forecast of $4.4 billion.
Foreign direct investments, meanwhile, summed up to $2.615 billion as of July, above the BSP forecast of $2.2 billion. Foreign portfolio investments or hot money already totaled $2.007 billion as of August, still less than half of the central bank’s projection of $4.4 billion.
For remittances, latest data showed the amount has hit $12.627 billion as of July. BSP has forecast cash remittances to grow by five percent this year from last year’s $21.391 billion level.