The Philippines’ balance Payment (BOP) Excess airbag August to $359 million, reflecting the net income of central bank Income from overseas investmentBangladesh Bangladesh ng pilipinas (BSP) said.
Preliminary data from BSP shows that BOP surplus was $359 million in August, expanding from $88 million in the same period last year.
In the month, the BOP position turned from a $1.67 billion deficit recorded in July to a surplus.
“BOP surplus reflects the net income from Bangladesh’s ng Pilipinas’ investment from foreign investment,” the central bank said in a statement.
BOP refers to the economic transactions between the country and other countries. The surplus indicates that the country has more funds into the country, while the deficit indicates that the country spends more than the fees received.
During the January-August period, the country’s BOP positions turned into a deficit of $53.97 billion, a reversal from a $15.92 billion surplus in 2024.
“Preliminary data show that the BOP deficit at the beginning of the year was largely due to continued trade in the commodity deficit,” BSP said.
The difference between the balance of traded bonds or the value of imports in the Philippines narrowed to $28.46 billion from $29.93 billion a year ago between January and July.
“This part is offset by personal remittances from overseas Filipinos, foreign borrowing from the National Government, foreign direct and portfolio investments, and continued net inflows in trade in services,” the BSP said.
Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said in an email that the latest BOP position partially reflects the central bank’s investment gains from abroad.
He added: “Given that the U.S. trade deals and tariffs extended deadlines on August 7, 2025, which was offset by Trump’s risk factors or premiums, which has led to some market volatility around the world.”
U.S. President Donald J. Trump imposed higher tariffs on imports from dozens of countries, including the Philippines, effective August 7.
The United States imposes a 19% tariff on Filipino goods.
Mr Ricafort said BOP positions also appeared in August, with the government paying off foreign debt and increasing LO volatility.California Forex Market.
In August, the peso made a weaker average of P57.2525 per dollar from P56.7523 recorded in July.
BSP expects the overall BOP jobs to reach a deficit of $6.3 billion this year, accounting for -1.3% of GDP, with a deficit of $2.8 billion in 2026, accounting for -0.5% of GDP.
US dollar reserves
Meanwhile, BSP said that the BOP position reflects the rise of the International Reserve (GIR) to $107.1 billion as of the end of August and the end of July.
“The latest GIR level ensures that in extreme conditions, in extreme cases, the balance of payment financing needs such as payment for imports and debt, in the absence of export gains or foreign loans,” said BSP.
The central bank said the U.S. dollar reserve level as of late August “still a sufficient liquidity buffer”, equivalent to 7.2 months of imports of goods and services and the highest income, more than double the three-month standard.
This is also enough to cover 3.7 times the short-term foreign debt of the country based on residual maturity.
GIR includes foreign-based securities, foreign exchange and other assets As gold. It enables a country toNance imports and foreign debt, maintains the stability of its currency and protects itself Global economic destruction.
The central bank expects GIR to reach $100.4 billion by the end of 2026, compared with $105 billion in 2026. Katherine K. Chen
