Philippines reports $3.1 billion balance of payments surplus

The Philippines experienced a significant shift in its financial situation, reporting a balance of payments (BOP) surplus in February after months of deficits. The surplus reached $3.1 billion, thanks to increased dollar inflows linked to the government’s recent international debt sales. Data from the Bangko Sentral ng Pilipinas (BSP) revealed that this surplus reversed the $4.1 billion deficit reported in January. The February surplus is the largest seen in five months and ends a streak of four consecutive months of deficits. The improvement in the country's financial position is largely attributed to fresh foreign borrowings, totaling $3.25 billion from sales of US dollar and euro-denominated bonds. This influx of cash is expected to boost the country’s dollar resources for international transactions. BSP officials expect that continued growth in dollar inflows will improve the BOP data further in the coming months. The surplus in February also increased the Philippines' gross international reserves (GIR) to $107.4 billion, up from $103.3 billion at the end of January. This level of reserves is sufficient to cover 7.4 months of imports and can also meet almost four times the country’s short-term external debt. The BSP aims for the GIR to reach $110 billion by the end of 2025.