THE Philippines’ balance of payments (BOP), which accounts for the transactions of the country with the rest of the world, registered a surplus of US$226 million in June 2025.
This marks a reversal from the US$155 billion deficit recorded in June 2024.
The BOP surplus reflected the foreign currency deposits by the national government (NG) with the Bangko Sentral ng Pilipinas (BSP) and income from BSP investments.
The BOP surplus in June helped narrow the year-to-date deficit, reducing it from US$5.8 billion in January to May 2025 to US$5.6 billion in January to June 2025.
Preliminary data indicate that the year-to-date BOP deficit was largely due to the continued trade in goods deficit. This decline was partly offset, however, by the sustained net inflows from personal remittances from overseas Filipinos, foreign borrowings by the NG, and foreign portfolio investments.
The BOP position mirrored the increase in the gross international reserves (GIR), which rose from US$105.2 billion as of end-May 2025 to US$106.0 billion by end-June 2025.
The latest GIR level provides a robust external liquidity buffer, equivalent to 7.2 months' worth of imports of goods and payments of services and primary income.
Moreover, it covers about 3.4 times the country's short-term external debt based on residual maturity.
GIR are made up of foreign-denominated securities, foreign exchange, and other assets including gold. GIR help a country finance its imports and foreign debt obligations, stabilize its currency, and provide a buffer against external economic shocks. PR