MANILA, Philippines - The country's balance of payments (BOP) surplus rose to an all-time high last year, mainly on the back of a surge in capital inflows.
The Bangko Sentral ng Pilipinas (BSP) reported that the BOP surplus stood at $14.4 billion in 2010, more than double the $6.4 billion recorded in the year before.
The central bank attributed the increase to higher exports, remittances and investments in business process outsourcing.
It also cited a surge in portfolio investments or "hot money" and foreign direct investments.
Inflows of portfolio investments in stocks and bonds totaled $4 billion in 2010, a sharp reversal of the $625 million outflows in 2009.
The BSP was targeting a BOP surplus of $8.2 billion last year. In 2009, the BOP reached $6.42 billion.
The BOP refers to the difference of foreign exchange inflows and outflows. It represents the country’s transactions with the rest of the world.
Foreign exchange reserves or GIR rose to $62.4 billion in 2010 from $44.2 billion in 2009.