MANILA - The Philippines' overall balance of payments (BOP) position posted a deficit of $1.8 billion in July 2022, the Bangko Sentral ng Pilipinas (BSP) said Friday.
This is a reversal from the $642 million BOP surplus recorded in the same month last year, the BSP said in a statement.
"The BOP deficit in July 2022 reflected outflows arising mainly from the National Government’s foreign currency withdrawals from its deposits with the BSP to settle its foreign currency debt obligations and pay for its various expenditures," the BSP said.
The cumulative January-July 2022 balance of payment deficit is now at $4.9 billion, higher than the $1.3 billion deficit recorded in the same period a year ago.
"Based on preliminary data, this cumulative BOP deficit reflected the widening trade in goods deficit," BSP said.
This means the gross international reserves (GIR) level declined to $99.8 billion at the end of July 2022 over $1 billion less than the $100.9 billion at the end of June 2022.
"The latest GIR level represents a more than adequate external liquidity buffer equivalent to 8.3 months’ worth of imports of goods and payments of services and primary income. Moreover, it is also about 7.2 times the country’s short-term external debt based on original maturity and 4.6 times based on residual maturity," the BSP said.