THE country’s balance of payments (BOP) rose to a 21-month high, recording a surplus of US$3.4 billion, data from the Bangko Sentral ng Pilipinas (BSP) showed.
Data released late Monday, July 20, 2026, showed that the surplus during the month was the highest recorded since the $3.54 billion logged in September 2024.
The BSP said this helped narrow the January-to-June BOP deficit to $3.9 billion from $7.3 billion in January to May.
“The year-to-date BOP position reflected the continued trade-in-goods deficit and net outflows from foreign portfolio investments,” the BSP said.
This was partly offset by the sustained net inflows from personal remittances of overseas Filipinos, foreign borrowings by the national government, trade in services, and foreign direct investment.
The gross international reserves (GIR), meanwhile, also rose to $104.7 billion in June from $103.9 billion in May.
The increase was driven by the national government’s net foreign currency deposits with the BSP and the BSP’s net income from its investments abroad.
These were, however, partly offset by the downward valuation adjustments, primarily driven by changes in prices of the BSP’s gold holdings and foreign currency-denominated reserve assets, and the national government’s drawdowns on its foreign currency deposits with the BSP for external debt service.
The BSP said the GIR provides sufficient foreign currency to meet the country’s import needs, service its external debt obligations, and serve as a buffer against external economic shocks.
The GIR consists of foreign-denominated securities, foreign exchange, and other assets, including gold.
These can help finance imports and foreign debt, stabilize the currency, and cushion the economy against external shocks. / PNA
