Balance of Payments Position Records Deficit in January

Manila: The country's balance of payments (BOP) position posted a deficit of USD4.1 billion in January this year, the Bangko Sentral ng Pilipinas (BSP) said. Data released by the BSP late Wednesday showed the BOP deficit last month was higher than the USD740 million deficit recorded in January last year. According to Philippines News Agency, the BOP summarizes a country's economic transactions with the rest of the world for a specific period. The overall position can be in surplus, deficit, or balance. "The BOP deficit in January 2025 reflected the Bangko Sentral ng Pilipinas' (BSP) net foreign exchange operations and drawdowns by the national government on its foreign currency deposits with the BSP to meet its external debt obligations," the BSP said. The BSP reported that the BOP position reflects a decrease in the final gross international reserves (GIR) level to USD103.3 billion as of end-January 2025 from USD106.3 billion as of end-2024. It noted, however, that the latest GIR level represents a more th an adequate external liquidity buffer equivalent to 7.3 months' worth of imports of goods and payments of services and primary income. Furthermore, the BSP stated that the GIR is also about 3.7 times the country's short-term external debt based on residual maturity.