The overall balance of payments (BOP) position posted a deficit of $53 million in July , lower than the $1.8 billion BOP deficit recorded in the same month last year.

The BOP deficit in July reflected net outflows arising mainly from the National Government’s (NG) payments of its foreign currency debt obligations.

Notwithstanding the deficit in July, the cumulative BOP position registered a surplus of $2.2 billion in the first seven months of the year, which was a reversal from the $4.9 billion deficit recorded in the same period a year ago.

Based on preliminary data, this development reflected mainly the improvement in the balance of trade and the sustained inflows from personal remittances, net foreign borrowings by the NG, trade in services, and foreign direct investments.

Gross international reserves (GIR) level increased to $100 billion as of end-July from $99.4 billion as of end-June.

The latest GIR level represents a more than adequate external liquidity buffer equivalent to 7.4 months’ worth of imports of goods and payments of services and primary income.

It is also about 5.9 times the country’s short-term external debt based on original maturity and 4.1 times based on residual maturity. BSP