PHL payments surplus widens to $4.8B in 1st five mos.

The Bangko Sentral ng Pilipinas (BSP) on Monday reported a balance of payments (BOP) surplus of $217 million in May, bringing the total BOP to $4.8 billion in the first five months or 71 percent of this year’s forecast. The BOP, which reflects the Philippines’ transactions with the rest of the world, is expected to hit $6.7 billion for 2011. “The BOP surplus reflected the [expanded] gross international reserves of $68.9 billion as of end-May 2011," BSP Governor Amando Tetangco Jr. said. Tetangco attributed the surplus primarily to the BSP’s foreign-exchange activities in May, the bank’s income from its international investments, and the Treasure Bureau’s foreign currency deposits. “On the outflow side, there were payments made by the national government and the BSP to meet maturing obligations plus the foreign currency withdrawals of [the Power Sector Assets and Liabilities Management Corp.]," he added. Tetangco also said the BOP surplus may have been widened by portfolio investment inflows, better known as “hot" or speculative money, as well as receipts of merchandise exports and foreign-currency earnings of overseas Filipino workers. “These were the major sources of foreign currency boosting the level of the gross international reserves totaling $68.9 billion reported in the month of May," Tetangco added. — PE/VS, GMA News