The overall balance of payments (BOP) position posted a surplus of $612 million in December 2022 albeit lower than the $991 million BOP surplus recorded in the same month last year, the Bangko Sentral ng Pilipinas (BSP) said Thursday.

The BOP surplus in December 2022 reflected inflows arising mainly from the BSP net foreign exchange operations and net income from its investments abroad.

Meanwhile, the BOP surplus in December reduced the full-year 2022 BOP deficit to $7.3 billion from a deficit of $7.9 billion in January to November 2022.

Nonetheless, the full-year 2022 BOP deficit was a reversal from the $1.3 billion surplus recorded in 2021.

Based on preliminary data, this cumulative BOP deficit was due to the widening trade in goods deficit as goods imports continued to surpass goods exports on the back of the increase in international commodity prices and resumption in domestic economic activities.

The gross international reserves (GIR) level increased to $96.1 billion as of end-December 2022 from $95.1 billion as of end-November 2022.

The latest GIR level represents a more than adequate external liquidity buffer equivalent to 7.3 months’ worth of imports of goods and payments of services and primary income. Moreover, it is also about 5.9 times the country’s short-term external debt based on original maturity and 3.9 times based on residual maturity. BSP