Philippines posts largest monthly BOP surplus in 10 years

The Philippines recorded its largest monthly balance of payments (BOP) surplus in nearly a decade in October 2020, reaching $3.44 billion.

This surplus represents a significant increase from the $2.104 billion recorded in September 2020 and $163 million in October 2019.

The October surplus was primarily driven by the Bangko Sentral ng Pilipinas' (BSP) income from its investments abroad, foreign exchange operations, and foreign currency deposits held by the National Government.

For the first ten months of 2020, the cumulative BOP surplus reached $10.31 billion, an 80% increase compared to the $5.73 billion during the same period in 2019.

The year-to-date BOP surplus was further supported by increased net foreign borrowings by the National Government, a reduced merchandise trade deficit, and consistent net inflows from foreign direct investments, personal remittances, and trade in services.

The BSP anticipates a full-year BOP surplus of $8.1 billion, equivalent to 0.6% of the gross domestic product.