The country’s bond issues pushed its balance of payments (BoP) past the surplus of $ 2 billion in April alone and reversed the deficit seen the month before.
The Bangko Sentral ng Pilipinas (BSP) reported on Wednesday that the country’s BoP surplus reached $ 2.61 billion in April, a growth of 57% from the surplus of $ 1.67 billion in April. ‘April 2020.
It is also the first month that the country’s BoP entered surplus territory for this year.
The BoP is generally considered to be an important economic indicator in an economy because it shows the level of income or expenditure of the Philippines with its transactions with the world. A surplus means that the country had more dollar revenue than its expenditure during the period.
The Philippines BoP was in deficit in the first three months of 2021, the largest being the $ 2.02 billion deficit the country recorded in February.
“The BOP surplus in April 2021 was attributed to inflows mainly from the proceeds of the national government bond issues ROP Global and Samurai, which were deposited with the BSP,” the Central Bank said in a statement. .
At the end of March of this year, the Philippine government was able to raise 24.2 billion pesos in its sale of 3-year zero coupon samurai bonds, marking its successful return to the said market after more than a year of hiatus. Subsequently, in mid-April, the government also raised 122.4 billion pesos through its first three-tranche euro-denominated bond issue.
The country’s strong BoP surplus in April nearly closed the gap for the first four months of the year.
The Philippines posted a deficit of $ 231 million from January to April this year, recovering from the $ 2.84 billion deficit from January to March this year. However, the deficit is still a reversal of the $ 1.6 billion surplus from January to April in 2020.
The BSP blamed the four-month deficit on the country’s merchandise trade deficit and net outflows of foreign portfolio investment.
Image courtesy of Roy Domingo