PH registers 2-year high BOP surplus, reverses 2022 deficit
MANILA, PHILIPPINES — The Bangko Sentral ng Pilipinas (BSP) recently reported that the country posted a two-year high balance of payments (BOP) surplus amounting to US$3.08 billion in January.
According to BSP, this reverses the US$102 million deficit incurred in 2022. The central bank attributes this to the current administration’s move towards the offshore debt market.
“The BOP surplus in January 2023 reflected inflows arising mainly from the national government’s net foreign currency deposits with the BSP, which include proceeds from its issuance of ROP Global Bonds and net income from the BSP’s investments abroad,” the BSP said.
Based on data from BSP, the latest recorded figure is the highest since the surplus of US$4.24 billion was recorded in December 2020.
In January, the new administration tapped the international debt market for the second time since President Ferdinand “Bongbong” Marcos Jr. assumed office in June last year.
The Philippines issued US$3 billion worth of global bonds payable in 5.5, 10.5, and 25 years despite rising interest rates amid the aggressive rate hikes delivered by global central banks led by the U.S. Federal Reserve to tame inflation.
