Robust remittances reverse RP's BOP deficit

MANILA, Philippines - Robust remittances and strong foreign investments allowed the Philippines to reverse a three-month deficit on its external payments position, the Bangko Sentral ng Pilipinas (BSP) said. Data from the Bangko Sentral ng Pilipinas (BSP) showed that the Philippines' balance of payments hit a $19 million surplus in November, after posting consecutive monthly deficits since August. The November 2008 figure is also an improvement over the $32 million deficit registered in the same month last year. "This could be attributed to the steady flow of remittances, net foreign direct investment inflows and investment income of the BSP," said central bank governor Amando M. Tetangco Jr in a text message sent to reporters. The November surplus brings the country's eleven-month external payments position to $364 million, far from the balance of payments surplus of $7.838 billion in January to November 2007. The balance of payments (BOP) data shows the monetary equivalent of a country's trade and financial transactions with the international market. A large BOP surplus indicates a strong positive sentiment of investors towards a country. Monetary authorities started the year with a balance of payments surplus outlook of $3.4 billion. It was scaled down to $2.5 billion in June and to $2 billion in September due to adverse economic conditions. Remittances continued to provide strong support for the Philippines' position. Latest data from the central bank showed that total inflows from overseas Filipinos from January to October has hit $13.708 billion, 15.5 percent higher than the amount sent in the same period last year. Foreign direct investments from January to September stood at $1.387 billion, lower than the 2007 nine-month figure of $2.524 billion. - GMANews.TV