The central bank said the country’s balance of payments (BOP) deficit is down to $231 million in the first four months on account of the $2.614 billion surplus recorded for the month of April.
The BOP deficit improved from $2.844 billion at the end of the first quarter or as of end-March. It is however a reversal of the $1.598 billion surplus in the same period in 2020.
“Based on preliminary data, this cumulative BOP deficit was partly due to the country’s merchandise trade deficit and net outflows of foreign portfolio investments,” said the Bangko Sentral ng Pilipinas (BSP).
The BOP surplus for the month of April is higher than same time last year of $1.666 billion.
The BSP said the BOP surplus in April was due to the deposits of the National Government (NG) from its issuance of ROP Global and Samurai Bonds last April.
The NG issued $2.52 billion ROP Global Bonds due April 2025, April 2033 and April 2041. It also raised $498 million ROP Samurai Bonds due April 2024.
The BSP, in reporting the latest BOP, also confirmed the final gross international reserves (GIR) end-April which was $107.71 billion, up from end-March’s $104.48 billion. The latest GIR level is considered “more than adequate external liquidity buffer which can help cushion the domestic economy against external shocks.” The BSP forecasts a BOP surplus of $6.2 billion this year and $3.8 billion in 2022. The GIR, in the meantime, is expected to hit $114 billion this year and $117 billion in 2022.