MANILA, Philippines – The country’s balance of payments (BOP) position reverted back to a deficit in May amid the continued outflow of funds and strong imports, the Bangko Sentral ng Pilipinas (BSP) reported yesterday.
BSP Deputy Governor Diwa Guinigundo said the Philippines booked a BOP deficit of $59 million in May, reversing the $241 million surplus recorded in the same period last year as well as the $917 million surplus registered in April.
Guinigundo attributed the shortfall to the foreign exchange operations of the central bank as well as the foreign exchange payments made by the national government on its foreign obligations.
He pointed out the gains from the foreign exchange deposits by the national government as well as investment income of the BSP from abroad were not enough to wipe out the deficit last month.
“These bookings must have been driven by merchandise trade…