BOP posts $1.5b deficit in December 2024; End-December GIR at $106.3b
The overall balance of payments (BOP) position posted a deficit of $1.5 billion in December 2024, a reversal from the $642 million BOP surplus recorded in December 2023.
The BOP deficit in December reflected the Bangko Sentral ng Pilipinas’ (BSP) net foreign exchange operations and drawdown on the national government’s deposits with the BSP to pay off its foreign currency debt obligations.
Notwithstanding the deficit in December, the cumulative BOP position registered a surplus of $609 million in 2024.
However, this level was lower than the $3.7 billion surplus recorded in 2023.
Based on preliminary data, the decline in the cumulative BOP surplus was due to higher trade in goods deficit, and lower net receipts from trade in services and net foreign borrowings by the NG.
This decline was partly muted, however, by the continued net inflows from personal remittances as well as net foreign portfolio and direct investments.
The BOP position reflects a decrease in the final gross international reserves (GIR) level to $106.3 billion as of end-December 2024 from $108.5 billion as of end-November 2024.
The latest GIR level represents a more than adequate external liquidity buffer equivalent to 7.5 months’ worth of imports of goods and payments of services and primary income. Moreover, it is also about 3.7 times the country’s short-term external debt based on residual maturity. Bangko Sentral ng Pilipinas
