Balance of payments hits 5-month high in May
MANILA – The country's balance of payments (BOP) surplus in May was the biggest in five months, bringing the deficit in the first five months of the year to $4.12 billion, data from the Bangko Sentral ng Pilipinas (BSP) showed.
BOP surplus reached $373 million in May, a reversal of the $19-million deficit in April.
BSP Governor Amando Tetangco, Jr. said the BOP surplus was due to the central bank's foreign exchange operations, foreign exchange deposits of the national government, and income from BSP investments overseas.
The BSP expects the country's BOP, a measure of the country's transactions with the global economy, to yield a surplus of $3 billion this year, or 0.9 percent of GDP, compared with last year's $5.1 billion surplus.
The central bank also forecasts the country's foreign reserves to climb to a record $88 billion at the end of 2014, from $83.2 billion at the end of 2013.
The central bank sees the current account surplus this year at $10.4 billion, or 3.3 percent of GDP, compared with the $9.4 billion surplus in 2013, or 3.5 percent of GDP. -- With Reuters