MikeLigalig.com

OVERALL BOP POSITION POSTS US$1.27 BILLION SURPLUS IN AUGUST 2018

The country's overall balance of payments (BOP) position yielded a surplus of US$1.27 billion in August 2018, a reversal from the US$7 million deficit recorded in the same month last year. Inflows in August 2018 stemmed mainly from net foreign currency deposits of the National Government (NG) and income from the BSP's investments abroad during the month. These were partially offset, however, by the payments made by the NG for its foreign exchange obligations and foreign exchange operations of the BSP during the month in review.

Notwithstanding the surplus posted in August, the cumulative BOP position for the period January-August 2018 registered a deficit of US$2.44 billion, higher than the US$1.39 billion BOP deficit recorded in the comparable period in 2017. The higher cumulative BOP deficit for the period may be attributed partly to the widening merchandise trade deficit (based on the Philippine Statistics Authority's preliminary data) for the first seven months of the year that was brought about by the sustained rise in imports of raw materials and intermediate goods as well as capital goods to support domestic economic expansion. The reported BOP position is consistent with the final GIR level of US$77.93 billion as of end-August 2018. At this level, the GIR represents a more than ample liquidity buffer and is equivalent to 7.1 months' worth of imports of goods and payments of services and primary income. It is also equivalent to 6.4 times the country's short-term external debt based on original maturity and 4.4 times based on residual maturity.

* Today's Helpful Tip *
Tala app is a fast and easy way to borrow money, and it's used and trusted by many. Download Tala to join millions of Filipino users today! >>> http://inv.re/9o3vp



Linkback: https://tubagbohol.mikeligalig.com/index.php?topic=91614.0