By Katherine K. Chan, A reporter
PHILIPPINES Balance of The balance of payments (BoP) increased to more than $3 billion in June, which helped narrow the BoP deficit in the first half of the year, central bank data showed.
Based on Bangko Sentral ng Pilipinas (BSP) data released late Monday, the country's BoP position remained at the lowest level for two consecutive months at $3.403 billion in June.
This is the BoP's largest monthly surplus in nearly two years or from $3.526 billion in September 2024.
It's also wider than last year's more than $226-million more than $131-million in May.
BoP refers to a country's economic trade with other nations. A deficit shows that the country spent more money than it received, while a surplus shows that there is money coming into the country.
“June's surplus is likely to come from a combination of seasonal dollar inflows, government external financing, and equity gains. It's a good sign, but not yet the norm,” said an SM Investments Corp. economist. Robert Dan J. Roces in a Viber message.
Economist Rizal Commercial Banking Corp. Michael L. Ricafort said the increase in the surplus was largely due to the proceeds from the $2.5 billion the government collected from its latest three-dollar bond. a donation.
Last month, the Treasury Department said it sold $550 million in five-and-a-half-year bonds, $1.65 billion in ten-year bonds, and raised $300 million in international bonds due 2051.
June's surplus brought the Philippines' BoP deficit to $3.877 billion in the first half of the year, narrower than the $7.28 billion gap from May and the $5.588 billion deficit in the same period last year.
The central bank said the country's BoP outlook for the year-to-date remains weak as it continues to widen the trade gap and large capital outflows.
The Philippines has run a monthly trade deficit for more than a decade, with the latest data showing the gap widened 50.5% year-on-year to $5.48 billion in May from $3.64 billion.
Meanwhile, the latest BSP data showed the country's foreign portfolio investment, also known as hot money, slowed to a net outflow of $4.17 billion as of May from an inflow of $1.52 billion seen a year ago.
However, the BSP noted that this is partially promised by “continuous income from personal assets of overseas Filipinos, foreign loans by the NG (National Government), trade in services, and foreign direct investment.”
“The key is whether exports, remittances, tourism, and inflows continue to hold, as that will determine how sustainable the external environment is,” said Mr.
The World Bank has noted that trade imbalances and tight financial conditions will continue to weigh on the country's external environment into next year.
It expects the BoP deficit to widen to $10.7 billion or -2.1% of gross domestic product (GDP) by the end of 2026 from $5.7 billion or -1.2% of GDP last year.
DAUGHTER OVER THREE MONTHS
On the other hand, Philippines' gross international reserves (GIR) reached $104.745 billion in the first half of 2026, according to updated BSP data.
This marks the highest dollar reserves held by the central bank in three months or up from $106.636 billion from the first quarter.
The latest GIR rate increased 0.73% from $103.988 billion from May but fell annually for the third consecutive month by 1.18% from $105.998 billion last year.
The increase was due to NG's net foreign currency deposits at the central bank and BSP's net profit from its foreign investments.
However, the BSP also noted that this is due to “lower price adjustments, mainly driven by changes in the prices of BSP's gold and foreign currency reserves, as well as NG's drawdown in its foreign currency deposits with the BSP's foreign debt service.”
Dollar reserves are central bank foreign assets held primarily as investments in foreign-issued securities, foreign currencies, and currency gold, among others.
This is supplemented by International Monetary Fund (IMF) claims in the form of fund reserves and special drawing rights (SDRs).
The central bank's gold holdings fell 24.58% to $17.194 billion at the end of June from $13.802 billion a year ago but fell 11.74% from $19.48 billion the previous month.
Meanwhile, the country's reserve position at the IMF reached $724.6 million, down 1.06% from $732.4 million last year but 1.46% higher than the $712.2 million at the end of May.
SDRs – or the amount the Philippines can receive from the IMF's reserve currency basket – also fell by 0.75% to $3.915 billion from $3.945 billion last year and by 0.93% from $3.951 billion last month.
The central bank's foreign currency and deposits fell 48.35% to $2.298 billion in the first quarter from $4.449 billion in the comparable period last year. However, it doubled (176.29%) from $831.7 million from May.
BSP data also showed that its securities were worth $72.037 billion during the period, down 5.73% from $76.413 billion last year and 0.98% from $72.75 billion last month.
On the other hand, other reserves increased by 28.97% year-on-year to $8.587 billion from $6.658 billion and by 37.13% month-on-month from $6.262 billion.
The BSP said the country's end-June GIR level remained adequate, covering about 3.7 times the country's short-term external debt based on remaining maturities.
It also translates to 6.8 months worth of goods sales and services payments and basic income, which is still above the three-month level.
“These provide suffstrong foreign currency to meet the country's import needs and to meet its external debt and act as a buffer against external economic shocks,” the central bank said.
The GIR allows a country to finance imports and external debt, maintain its currency stability, and protect itself from global economic shocks.
The BSP sees its foreign reserves reaching $104 billion this year, down from the $110.8 billion it held in 2025.
