Wednesday, 19 August 2009

Philippines posts $2.7-B BOP surplus

Jun Vallecera
Business Mirror

THE country’s balance of payments (BOP) posted a significantly larger surplus of $2.72 billion in the first seven months, boosting the likelihood the year would end with something beyond the most optimistic expectations of the Bangko Sentral ng Pilipinas (BSP).

In July the BOP had a $506-million surplus, nearly seven times larger than the $73 million in June when the external sector was variously weakened by the general slowdown in the country’s main export markets.

BSP Governor Amando Tetangco Jr. originally expected the BOP to have a surplus of just $700 million this year, at that time already a sizable improvement from actual BOP surplus of $89 million in 2008.

With the more advanced economies now seen as coming out of recession, Tetangco said there is increasing likelihood the year’s BOP will end “higher than $1 billion” and that there will be a review in October and the target may be recast.

He was not really surprised at the BOP surplus, as he traced much of it to continued
foreign inflows from the remittances of overseas Filipino workers, foreign portfolio or “hot money” investments, and foreign direct investment.

OFW remittance flows, for example, have stubbornly resisted expectations of negative growth forecast by the World Bank/International Monetary Fund Group and even by the Manila-based Asian Development Bank.

Continued foreign exchange flows, Tetangco noted, allowed the country’s gross international reserves to hit the all-time high of $39.99 billion in July or enough to pay more than six months of imports or maturing foreign debt.

1 comment:

  1. I am not supprised Unionbanks profits are up, they seem to think they have the right to steal their customers money.
    We have just been informed about just such a case a young woman goes to a ATM machine to withdraw money from her Unionbank account for food, the machine does not pay out but it still deducts the amount from her account, so she reports it to Unionbank only to be informed it will take them between 3 to 15 days to even look into it. In that time the woman goes hungry, what if it was her rent money she was withdrawing and Unionbank takes 15 days to look into it, by that time she has been evicted from her house and living on the streets.
    It is theft and there is no doubt about it, they have taken her money and are refusing to let her have it.