MANILA – – The Philippines posted USD569 million balance of payment (BOP) deficit in June 2017, the highest after the USD1.67 billion deficit in November 2016.
Data released by the Bangko Sentral ng Pilipinas (BSP) Wednesday showed that the latest monthly BOP position brought the first half of the year’s level to USD706 million deficit, higher than central bank’s USD500 million deficit target for the year.
Last June’s level is a reversal from the USD418 million BOP surplus same month in 2016 while the year-to-date level is also a turn-around from the USD634 million surplus in end-June last year.
BOP sums a country’s total transactions with the rest of the world.
BSP Deputy Governor Diwa Guinigundo traced the deficit in the latest BOP position to higher US dollar requirements by corporates, which, he said, “affected FX (foreign exchange) operations of the BSP”, and payments by the national government of its foreign currency-denominated liabilities.
He, however, said these outflows were countered by the deposits of the national government with the central bank and gains from the central bank’s investments overseas.
He also explained that “although trade data are not yet available for June, we surmise that while exports continued to recover, the expanding economy pushed imports higher particularly of capital goods and raw materials.”
“This contributed to the recent downtrend of the peso against the US dollar even as the overall macroeconomic fundamentals remain robust,” he added. Joann Santiago/PNA-northboundasia.com