The country's balance of payments (BOP) position recorded a surplus of $2.1 billion in January to November this year, according to Bangko Sentral ng Pilipinas (BSP) data.

Data released on Thursday indicated that the cumulative BOP during the period was lower than the $3 billion recorded January to November last year.

The 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.

"Based on preliminary data, the decline in the cumulative BOP surplus was due to lower net receipts from trade in services and net foreign borrowings by the NG (national government)," the BSP said.

However, the BSP said the decline was partly muted by the continued net inflows from personal remittances, as well as net foreign portfolio and direct investments.

In November alone, the overall BOP position recorded a deficit of $2.3 billion, up from the $216 million deficit recorded in November 2023. 

"The BOP deficit in November 2024 reflected the national government’s (NG) net foreign currency withdrawals from its deposits with the BSP to settle its foreign currency debt obligations and pay for its various expenditures, and the BSP’s net foreign exchange operations," it said.

The BSP, meanwhile, said the BOP position reflects a decrease in the final gross international reserves (GIR) level to $108.5 billion from $111.1 billion as of end-October 2024.

"The latest GIR level represents a more than adequate external liquidity buffer equivalent to 7.7 months’ worth of imports of goods and payments of services and primary income," the central bank said.

It is also about 4.3 times the country’s short-term external debt based on residual maturity. 

PNA PHOTO