Sign up | Log in



Home  >>   Daily News  >>   Philippines News  >>   Economy  >>   Philippines FX surplus surges
NEWS UPDATES Asean Affairs                       20  August 2011

Philippines FX surplus surges

Related Stories

July 30, 2011
Philippines gets no rating upgrade

July 29, 2011
Philippine central bank keeps rate steady

July 27, 2011
Philippine executives have transparency

July 1, 2011
Philippines foreign debt increases

June 29, 2011
Philippines revises price index

June 20, 2011
Philippines taxes may increase in 2012

June 16, 2011
Philippines credit rating raised

June 8, 2011
Philippine reserves continue rising

May 31, 2011
Philippines growth slows

The Philippines’ foreign exchange surplus surged by sevenfold last month amid inflows from the central bank’s investments, coupled with strong remittances from overseas Filipino workers.

Data from the Bangko Sentral ng Pilipinas showed that the country’s balance of payments (BOP) registered a surplus of US$1.270 billion in July, up 724 percent from the $154 million in the same month last year.

BSP Deputy Gov. Diwa Guinigundo said the uptick was brought about by the resilience of remittances, which grew seven percent to $1.7 billion in June compared with $1.623 billion in the same month last year.

“We continue to show strong exports, remittances, revenues from business process outsourcing and tourism receipts. At the same time, we continue to get foreign direct and foreign portfolio investments in a strong way,” Guinigundo said.

He said inflows from the foreign exchange operations of the BSP, income from investments abroad and foreign currency deposits of the government contributed to the growth in the BOP surplus.

The cumulative BOP surplus jumped 82.9 percent to reach $6.286 billion at end-July from the $3.438 billion in the same seven-month period last year.

“Barring any unforeseen event, we expect the BOP to be resilient and the GIR to continue to expand. The reserve buildup is a consequence of a favorable BOP development. The dynamics in external sector are better than our projections early in the year. We are almost there and it is only July,” Guinigundo said.

The country’s BOP position was projected to register a surplus of $6.7 billion this year and $4.5 billion in 2012 amid expectations of a higher trade deficit.

The BOP is a summary of the country’s economic transactions—both in the current as well as in the capital and financial accounts—with the rest of the world.

Current account transactions cover trade in goods, services, income and transfers.

Exports are projected to grow by nine to 10 percent this year and by 12 percent in 2012, while imports are forecast to increase 17 to 18 percent in 2011 and 18 percent next year.

The other forms of investments under the BOP are loans and holdings of currency and deposits.

The BSP also forecast the country’s gross international reserves to reach $70 billion this year and $75 billion in 2012.

During the first half of the year, foreign exchange reserves grew by 42 percent to $69 billion compared with last year’s $48.7 billion. Month-on-month, the GIR grew by 0.21 percent from $68.85 billion in May.

The BSP holds international reserves for the foreign exchange requirements of the country in case the domestic commercial banks’ supply of the greenback falls short of demand.

The foreign assets that the BSP holds are mostly in the form of investments in foreign-issued securities, monetary gold and foreign exchange. An ample GIR level helps prop up the peso and keeps domestic inflation at bay.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Today's  Stories    20  August  2011 Subsribe Now !
• Villagers detained after protest Subcribe: Asean Affairs Global Magazine
• Indonesia hopes to become auto center Asean Affairs Premium
• Pertamina looks for help to develop natural gas
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• PM: Malaysia elections can go ahead
• Philippines FX surplus surges
• Aquino: separatist leader can dream
• Struggling Airport Link gets help

• Income gap- Thai government priority

Asean Analysis    21  August  2011

Advertise Your Brand
• WEEKLY SUMMARY Sponsor Our Events

Asean Stock Watch   19  August  2011

• Asean Stock Watch-August 19 p

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore
• Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline
• Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More


Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand