THE country’s overall balance of payments (BOP) position posted a deficit of US$196 million in February 2024, lower than the US$895 million BOP deficit recorded in February 2023. The BOP deficit in February 2024 reflected outflows arising mainly from the National Government’s (NG) payments of its foreign currency debt obligations.
Meanwhile, the BOP deficit in February brought the current year-to-date BOP level to US$936 million deficit, which was a reversal from the US$2.2 billion surplus recorded in January-February 2023. Based on preliminary data, this cumulative BOP deficit reflected mainly the continued trade in goods deficit coupled with the NG’s net repayments of its foreign loans.
The BOP position reflects a decrease in the final gross international reserves (GIR) level to US$102.0 billion as of end-February 2024 from US$103.3 billion as of end-January 2024. Notwithstanding the decline, the latest GIR level represents a more than adequate external liquidity buffer equivalent to 7.5 months’ worth of imports of goods and payments of services and primary income.2 Moreover, it is also about 6.0 times the country’s short-term external debt based on original maturity and 3.6 times based on residual maturity.
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