The Philippines recorded a deficit in its balance of transactions with the rest of the world for the fourth consecutive month in July, according to the Bangko Sentral ng Pilipinas (BSP). However, the deficit was the lowest for that period at $53 million, compared to $1.6 billion in July 2022 and $606 million in June.
The BSP attributed the July deficit to net outflows resulting from the national government’s payments of its foreign currency debt obligations. Despite the deficit, the cumulative balance of payments position registered a surplus of $2.2 billion in the first seven months of the year, a reversal from the $4.9-billion deficit recorded in the same period last year.
The BSP cited improvements in the balance of trade, personal remittances, net foreign borrowings by the national government, trade in services, and foreign direct investments as factors contributing to the surplus. In addition, the country’s gross international reserves reached $100 billion at the end of July.
