![\"\"](\"https:\/\/www.newsbeep.com\/ie\/wp-content\/uploads\/2026\/07\/2017-04-27T213710Z_945112154_RC13857B23D0_RTRMADP_3_GLOBAL-MARKETS.jpg\" "\\"Currencies\\"\/")
REUTERS<\/p>\n REUTERS<\/p>\n
By Katherine K. Chan, Reporter<\/p>\n
The Philippines\u2019 balance of payments (BoP) surplus widened to over $3 billion in June, which helped significantly narrow the BoP deficit in the first half of the year, central bank data showed.<\/p>\n
Based on Bangko Sentral ng Pilipinas (BSP) data released late on Monday, the country\u2019s BoP position remained at a surfeit for two straight months with $3.403 billion in June.<\/p>\n
This is the largest monthly BoP surplus in nearly two years or since the $3.526 billion in September 2024.<\/p>\n
It is also wider than the $226-million surplus a year ago and the $131-million surplus in May.<\/p>\n
BoP refers to the country\u2019s economic transactions with other nations. A deficit shows that the country spent more than it received, while a surplus indicates more funds entered the country.<\/p>\n
June\u2019s surplus brought the Philippines\u2019 BoP deficit to $3.877 billion in the first half of the year, narrower than the $7.28-billion gap as of May and the $5.588-billion deficit in the same period last year.<\/p>\n
The central bank said the country\u2019s year-to-date BoP position remained at a deficit as it continued to post a trade-in-goods gap and hot money net outflows.<\/p>\n
The Philippines has had a monthly trade-in-goods deficit for over a decade, with latest data showing the gap widened by 50.5% year on year to $5.48 billion in May from $3.64 billion.<\/p>\n
Meanwhile, latest BSP data showed the country\u2019s foreign portfolio investments, also known as hot money, reversed to a $4.17-billion net outflow as of May from the $1.52-billion net inflow seen a year earlier.<\/p>\n
However, BSP noted that this was slightly tempered by the \u201csustained net inflows from personal remittances of overseas Filipinos, foreign borrowings by the NG (National Government), trade in services, and foreign direct investment.\u201d<\/p>\n
The central bank has noted that trade imbalances and tighter financial conditions will continue to strain the country\u2019s external position until next year.<\/p>\n
It expects the BoP deficit to widen to $10.7 billion or -2.1% of gross domestic product (GDP) by end-2026, from $5.7 billion or -1.2% of GDP last year.<\/p>\n
THREE-MONTH HIGH GIR
On the other hand, the Philippines\u2019 gross international reserves (GIR) reached $104.745 billion in the first half of 2026, according to revised BSP data.<\/p>\n
This marks the highest dollar reserves held by the central bank in three months or since the $106.636 billion as of the first quarter.<\/p>\n
The latest GIR level edged up by 0.73% from the $103.988 billion as of May, but fell annually for a third consecutive month by 1.18% from $105.998 billion the previous year.<\/p>\n
The increase was driven by the NG\u2019s net foreign currency deposits with the central bank and the BSP\u2019s net earnings from its foreign investments.<\/p>\n
However, the BSP also noted that these were tempered by \u201cdownward valuation adjustments, primarily driven by changes in prices of the BSP\u2019s gold holdings and foreign currency\u2013denominated reserve assets, and NG\u2019s drawdowns on its foreign currency deposits with the BSP for external debt
service.\u201d<\/p>\n
Dollar reserves are the central bank\u2019s foreign assets held mostly as investments in foreign-issued securities, foreign exchange, and monetary gold, among others.<\/p>\n
These are supplemented by claims to the International Monetary Fund (IMF) in the form of reserve position in the fund and special drawing rights (SDRs).<\/p>\n
The central bank\u2019s gold holdings jumped by 24.58% to $17.194 billion at end-June from $13.802 billion last year, but dropped by 11.74% from $19.48 billion a month ago.<\/p>\n
Meanwhile, the country\u2019s reserve position in the IMF amounted to $724.6 million, down 1.06% from $732.4 million the previous year but 1.46% higher than end-May\u2019s $712.2 million.<\/p>\n
SDRs \u2014 or the amount the Philippines can tap from the IMF\u2019s reserve currency basket \u2014 also declined by 0.75% to $3.915 billion from $3.945 billion a year ago and by 0.93% from $3.592 billion the prior month.<\/p>\n
The central bank\u2019s foreign currency and deposits plunged by 48.35% to $2.298 billion in the first half from $4.449 billion in the comparable year-ago period. However, it more than doubled (176.29%) from $831.7 million as of May.<\/p>\n
BSP data also showed its securities were valued at $72.037 billion during the period, slipping by 5.73% from $76.413 billion last year and by 0.98% from $72.75 billion a month earlier.<\/p>\n
On the other hand, its other reserves rose by 28.97% annually to $8.587 billion from $6.658 billion and by 37.13% month on month from $6.262 billion.<\/p>\n
The BSP said the country\u2019s end-June GIR level remains adequate, covering about 3.7 times the country\u2019s short-term external debt based on residual maturity.<\/p>\n
It also translates to 6.8 months\u2019 worth of imports of goods and payments of services and primary income, still above the three-month standard.<\/p>\n
\u201cThese provide sufficient foreign currency to meet the country\u2019s import needs and service its external debt obligations and serve as a buffer against external economic shocks,\u201d the central bank said.<\/p>\n
GIR allows a country to finance imports and foreign debts, maintain the stability of its currency, and safeguard itself against global economic disruptions.<\/p>\n
The BSP sees its foreign reserves settling at $104 billion this year, lower than the $110.8 billion it held in 2025.<\/p>\n","protected":false},"excerpt":{"rendered":"REUTERS By Katherine K. Chan, Reporter The Philippines\u2019 balance of payments (BoP) surplus widened to over $3 billion…\n","protected":false},"author":2,"featured_media":560078,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[72,113,61,60,200470],"class_list":["post-560077","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-ie","tag-ireland","tag-katherine-k-chan"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/560077","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=560077"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/560077\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/560078"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=560077"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=560077"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=560077"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}