The country balance of payments or BOP surplus hit a 5 month high $682 million in August amid strong inflows, the BSP Bangko Sentral ng Pilipinas reported yesterday.
The surplus on August is a reversal of the $450 million deficiency recorded in the same month last year.
BSP Gov. Amando Tetangco Jr. said that the surplus was due to the foreign exchange operations of the central bank as well the foreign currency deposits in the national government.
He also pointed out the surplus was partially off set by the payments made by the national government for it’ss maturing obligations.
The Philippines incuured BOP deficit $813 million on January and $251 million on Febuary beofre its bounce back in March with a surplus of $854 million on April, $241 million on May, $418 million on June, $215 million on July, and $682 million on August.
The BOP show a summary of countrys transactions with the rest of the world. Components include trade, portfolio investments, and foreign direct, and even remittances from the Filipinos abroad.
The surplus meaning is more money go into the economy while a deficiency means otherwise.
On his part, Bangko Sentral ng Pilipinas Gov. Diva Guinigundo said strong inflows came from the 3% expansion in cash remittances from January to July, also a higher revenues from the business process of outscoring sector also robust receipts.
The Bangko Sentral ng Pilipinas lowered the project over all BOP surplus to $2 billion instead of the previous projection of $2.2 billion on 2016 because of the violatile global financial market caused by impending interest rate hike in the China and US.