The Philippines’ balance of payments (BOP) registered a $706 million surplus in October, reflecting improved external accounts. For January to October, the BOP recorded an overall deficit of $4.6 billion, showing signs of narrowing as inflows strengthened.

The October surplus mirrored the increase in gross international reserves (GIR) to $110.2 billion as of end-October. This level of reserves remains an adequate external liquidity buffer, equivalent to 7.4 months’ worth of imports of goods and payments of services and primary income.

It covers about 3.8 times the country's short-term external debt based on residual maturity.

The BOP accounts for the transactions of the country with the rest of the world. GIR are made up of foreign-denominated securities, foreign exchange, and other assets including gold. GIR helps a country finance its imports and foreign debt obligations, stabilize its currency, and provide a buffer against external economic shocks. Bangko Sentral ng Pilipinas