The Philippine balance of payments (BOP) surplus widened by $2.161
billion in November due to continued inflows of foreign capital as well
as increases in government borrowings and earnings of Bangko Sentral ng
Pilipinas.
The payments surplus surged 493.68
percent from $364 million a year earlier, pushing the year-to-date
surplus to $8.596 billion, Bangko Sentral reported Wednesday.
BOP is the difference between the inflow and outflow of dollars and
other currencies. A surplus means more funds coming in than the
Philippines pays out to other countries, and a deficit means the country
does not have the capacity to settle all its obligations.
Inflows are usually driven by foreign exchange inflows to the
Philippines such as remittances, portfolio investments, export revenues,
and direct investments in the business process outsourcing industry.
Import and foreign debt payments account for the outflows.
Bangko Sentral Governor Amando Tetangco attributed the November surplus
to a steady flow of foreign portfolio investments, proceeds from debt
issuances and the central bank's interest earnings.
“Main drivers for the BSP surplus in November were capital inflows,
loan proceeds of [the] NG (National Government) and investment income of
the BSP,” Tetangco told reporters in a text message.
For November, foreign portfolio investments – also known as “hot money”
for the ease with which they enter and exit an economy – surged by over
100 percent amid slew of good economic data.
Bangkok Central has projected that the country will end the year with a
BOP surplus of $6.8 billion – narrower than the November figures –
before easing to around $3 billion next year. — VS, GMA News
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