PHL posts US$ 864-M BOP surplus

By Joann Santiago

MANILA, Feb. 22 (PNA) -– The Philippines posted a balance of payments (BOP) surplus amounting to US$ 864 million in January this year, reversing a deficit in December 2011.

Data released by the Bangko Sentral ng Pilipinas (BSP) Monday showed that the surplus last January was however, lower than the US$ 1.606 billion registered in the same period last year.

Monetary officials expect a US$ 2.8 billion BOP surplus this year, far lower than the US$ 10.18 billion the country registered in 2011.

Factors expected to boost the BOP surplus include inflows from overseas Filipinos workers (OFWs) and foreign capital.

Last year, remittances from Filipinos abroad expanded by 7.2 percent, higher than central bank’s seven percent projection, after inflows totaled to US$ 20.1 billion. Total remittances in 2010 amounted to US$ 18.76 billion.

The BSP projects a five percent growth for remittances this year.

Relatively, foreign portfolio investments as of February 13, 2012 posted a net inflow of US$ 552.24 million, higher than year-ago’s net of US$ 221.75 million.

At the end of 2011, foreign portfolio investments, otherwise known as hot money due to the speed it comes in and out of the economy, reached US$ 4.08 billion, lower than year-ago’s US$ 4.61 billion. (PNA)
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