The central bank said on Tuesday that the Philippines’ payment balance (BOP) fell to a deficit of $167 million in July as the government paid off its foreign debt.
Preliminary data from Bangkok Sentral NG Pilipinas (BSP) shows that the BOP position had a deficit of $167 million in July, contrary to the $226 million surplus recorded in June, with a July 2024 balance of $62 million.
“The BOP deficit reflects the gradual decline in foreign currency deposits from the National Government (NG) to serve foreign debt obligations,” the BSP said in a statement.
In the first seven months, the BOP deficit expanded to $5.756 billion, marking a reversal of the $150.4 million surplus from January to July last year.
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.
“Preliminary data show that the BOP deficit at the beginning of the year was mainly due to the continued trade of the commodity deficit.” – Katherine K. Chen
