Manila: The country's overall balance of payments (BOP) position recorded a surplus of USD85 million in September this year, the Bangko Sentral ng Pilipinas (BSP) said. The BOP serves as a summary of the economic transactions between a country and the rest of the world over a specific period, reflecting either a surplus, deficit, or balance.

According to Philippines News Agency, the BOP surplus reported for September is attributed to the BSP's net income from its international investments and the national government's (NG) net foreign currency deposits with the BSP. This surplus has contributed to narrowing the BOP deficit from USD5.4 billion in January to August 2025, to USD5.3 billion in January to September 2025.

The BSP noted that the year-to-date BOP deficit is primarily influenced by the ongoing trade in goods deficit. Data from the Philippine Statistics Authority revealed that the trade deficit for January to August 2025 amounted to USD32.4 billion. However, the BSP pointed out that this was partially mitigated by sustained net inflows from personal remittances from overseas Filipinos, along with trade in services, foreign direct and portfolio investments, and foreign borrowings by the NG.

The BOP position also echoed an increase in the gross international reserves (GIR), which went up from USD107.1 billion at the end of August 2025 to USD109.1 billion by the end of September 2025. "The level of GIR remains an adequate external liquidity buffer, equivalent to 7.3 months' worth of imports of goods and payments of services and primary income," stated the BSP. This reserve level is about 3.8 times the country's short-term external debt based on residual maturity.

GIR, comprised of foreign-denominated securities, foreign exchange, and other assets, including gold, play a vital role in financing a country's imports and foreign debt obligations. They also help stabilize the currency and provide a safety net against external economic shocks.