The Bangko Sentral ng Pilipinas (BSP) said that the country's balance of payments (BOP) position recorded a surplus of $4.4 billion from January to October this year.
"The surplus reflected in part the continued net inflows from personal remittances, trade in services, and net foreign borrowings by the NG (National Government)," the central bank said.
Data released by the BSP late Tuesday showed that the cumulative BOP was up from the $3.2 billion surplus in the same period 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.
Furthermore, net foreign direct and portfolio investments contributed to the BOP surplus, it added.
In October, the overall BOP position, however, recorded a deficit of $724 million, a reversal from the $1.5 billion surplus in the same month last year.
The BSP said the deficit in October "reflected the National Government's net foreign currency withdrawals from its deposits with the BSP to settle its foreign currency debt obligations and pay for its various expenditures."
Meanwhile, the BSP said the BOP position reflects a decrease in the gross international reserves (GIR) level from $112.7 billion as of end-September to $111.1 billion as of end-October.
"The latest GIR level represents more than adequate external liquidity buffer equivalent to 8.0 months' worth of imports and payments of services and primary income," it said.
It is also about 4.4 times the country's short-term external debt based on residual maturity.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said the BOP data could improve in the coming months.
In an emailed statement, Ricafort said this could lead to an improvement in the country's GIR.
He said catalysts include the continued growth in overseas Filipinos' remittances, business process outsourcing revenues, exports, foreign tourism receipts, foreign direct investments, and other structural US dollar inflows in the country.
