THE country’s balance of payments (BOP) position reverted to a surplus of USD3.1 billion in February this year, the highest in five months, the Bangko Sentral ng Pilipinas (BSP) reported Wednesday, March 19.
BSP data showed that the surplus last month is a turnaround from the USD196 million deficit same month last year and the highest recorded since the USD3.52 billion surplus in September 2024.
“The BOP surplus reflected the national government’s (NG) net foreign currency deposits with the Bangko Sentral ng Pilipinas, which include proceeds from ROP (Republic of the Philippines) Global Bonds, and net income from the BSP’s foreign investments,” the BSP said.
The BSP, however, noted that end-February 2025 BOP recorded a deficit of USD992 million.
BOP summarizes a country’s economic transactions with the rest of the world for a specific period. The overall position can be in surplus, deficit, or balance.
The BSP traced the improved BOP position last February to the increase in central bank’s gross international reserves (GIR) to USD107.4 billion, up from USD103.3 billion a month earlier.
The latest GIR level is “equivalent to 7.4 months’ worth of imports of goods and payments of services and primary incomeā and “approximately 3.8 times the country’s short-term external debt based on residual maturity,ā it said.
“It’s quite impressive to see such a significant turnaround in the balance of payments position. A USD3.1 billion surplus in February 2025, compared to a USD196 million deficit in February 2024, indicates a substantial improvement in the country’s economic activities,” Reyes Tacandong and Co. senior adviser Jonathan Ravelas said.
Ravelas, however, said deficit for the first two months of the year still suggests underlying challenges that need to be addressed.
“This mixed result highlights the importance of maintaining a balanced approach to economic policies to sustain positive trends while mitigating deficits,” he added. (PNA)
