Thursday, 18 June 2009

Philippine BoP yields $2.14-billion surplus in May

Manila Bulletin

The country’s balance of payments (BoP) position is a surplus of $2.143 billion as of May, the central bank reported Tuesday.

Bangko Sentral ng Pilipinas (BSP) latest data show the BoP month-on-month reverted to a deficit of $55 million for the said month from April’s surplus of $466 million.

For 2009, the BSP is keeping a BoP forecast of $700 million. The BSP is relying on the National Government’s foreign exchange borrowings both donor aids and bond sales to prop up the BoP. The month of May’s BoP shortfall is lower compared to March’s $472 million deficit.

BoP summarizes the country’s economic transactions with the world and is determined by such indicators as exports/imports, foreign direct investments (FDIs) and remittances among other capital transfers.

BSP’s FDI forecast for this year is still a positive $700 million while they also expect foreign portfolio investments of $600 million despite investors risk sensitivity. Last year FDIs reached $1.4 billion but so-called hot money funds dropped to a net outflow of $3.7 billion.

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