The country's overall balance of payments (BOP) position recorded a surplus of $85 million in September this year, according to the Bangko Sentral ng Pilipinas (BSP).

The BOP is a summary of the economic transactions of a country with the rest of the world for a specific period.

The overall position can be in surplus, deficit or balance.

Data released Monday showed that the BOP surplus reflected the BSP's net income from its investments abroad and national government’s (NG) net foreign currency deposits with the BSP.

The surplus during the month helped narrow the deficit from $5.4 billion in January to August 2025 to $5.3 billion in January to September 2025.

The BSP said the year-to-date BOP deficit was largely due to the continued trade in goods deficit.

Data from the Philippine Statistics Authority showed that the trade deficit for January to August 2025 settled at $32.4 billion.

The BSP, however, said this was partly offset by the sustained net inflows from personal remittances from overseas Filipinos, trade in services, foreign direct and portfolio investments, and foreign borrowings by the NG.

The BOP position mirrored the increase in the gross international reserves (GIR), which rose from $107.1 billion as of end-August 2025 to $109.1 billion as of end-September 2025.

"The level of GIR remains an adequate external liquidity buffer, equivalent to 7.3 months' worth of imports of goods and payments of services and primary income," said the BSP.

It is also about 3.8 times the country's short-term external debt based on residual maturity.

GIR are made up of foreign-denominated securities, foreign exchange, and other assets including gold.

GIR help a country finance its imports and foreign debt obligations, stabilize its currency, and provide a buffer against external economic shocks.

PNA PHOTO