BOP surplus shrinks in October

Posted at 11/19/12 3:18 PM

MANILA, Philippines - The Philippines posted a balance of payments surplus of $604 million in October, significantly lower than the $208 million a year ago.

The BOP surplus in October was also lower than the $751 million surplus in September. 

This brought the January to October BOP surplus to $6.435 billion versus $9.929 billion a year ago. 

The BOP refers to the difference between foreign exchange inflows and outflows on a particular period and represents the country’s transactions with the rest of the world.

The central bank has said it was reviewing its forecast of$2.6 billion balance of payments surplus this year, with the possible upward revision likely to be announced this month.    

The central bank is also looking at raising its estimate for gross international reserves from the current range of $77.5 billion to $78 billion after reserves hit a record $81 billion in August.

Net portfolio inflows slowed to a 4-month low in October, with net inflows of $2.7 billion in January to October, down more than 20 percent from a year ago.  

The central bank expects cash remittances to grow 5 percent this year, slower than last year's 7.2 percent growth. 

Remittances in September grew 5.9 percent from a year earlier to $1.84 billion.