MANILA, Philippines (Xinhua) - The balance of payments (BOP) in the Philippines hit $3.27 billion at end-September according to the Bangko Sentral ng Pilipinas (BSP) Monday.
It stood as a surplus of $502 million in September alone, which was more than 10 times the surplus level in August, BSP governor Amando M. Tetangco Jr. told reporters on Monday.
He said the surplus could be traced in part to loan proceeds from the Asian Development Bank worth of $500 million as well as from remittances and investment income of the BSP during the period.
The surplus also marked the fourth time in a series that the monthly balance ended as an excess of foreign exchange earnings over foreign exchange expenses, making it more likely for the balance to end in surplus state as high as $5 billion.
Tetangco earlier said the BOP should end the year with a surplus of more or less $700 million, driven higher only by sustained resilience in the monthly remittance activities of millions of overseas Filipinos around the world.
In recent weeks, Tetangco noted that some foreign fund managers who left at the height of risk aversion activities have returned, helping firm up the outlook on the balance of payments that reflect the trade and transfer activities of the Philippines with the rest of the world.
The surplus state of the BOP at the moment indicates an excess in foreign exchange earnings relative to foreign exchange spending arising from the various transactions with counterparts around the world.