BOP swings to $1.17 B surplus in March

The country's balance of payments (BOP) position reverted to a $1.17-billion surplus in March from a $196-million deficit in February, data from the Bangko Sentral ng Pilipinas (BSP) showed.

- KEISHA TA-ASAN

“The BOP surplus in March reflected inflows arising mainly from the national government’s net foreign currency deposits with the BSP and net income from the BSP’s investments abroad,” the central bank said.

However, the surplus in March was 7.4 percent smaller than the $1.27 billion recorded in the same month in 2023.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said the lower BOP position compared to last year was due to the continued trade deficits in the past months and some payment of foreign debts.

The BOP is the difference in total values between payments into and out of the country over a period.

A surplus means more foreign exchange flowed into the country from exports, remittances from overseas Filipinos, business process outsourcing earnings and tourism receipts than what flowed out to pay for the importation of more goods, services and capital.