BoP position swings to $167 million deficit in July – BusinessWorld Online
THE PHILIPPINES’ balance of payments (BoP) swung to a $167 million deficit in July as the government paid off external debt, the central bank said on Tuesday.
Preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed the BoP position stood at a $167 million deficit in July, a reversal from the $226 million surplus recorded in June and the $62 million surplus in July 2024.
“The BOP deficit reflected national government’s (NG) drawdowns on its foreign currency deposits with the BSP to service external debt obligations,” the BSP said in a statement.
For the first seven months, the BoP deficit widened to $5.756 billion, marking a reversal from the $1.504-billion surplus in the January-July period last year.
BoP refers to the country’s economic transactions with other nations. A surplus indicates more funds entered the country, while a deficit shows that the country spent more than it received.
“Preliminary data indicate that the year-to-date BoP deficit was largely due to the continued trade in goods deficit,” the central bank said. – Katherine K. Chan