THE country’s overall balance of payments (BOP) position posted a deficit of US$1.8 billion in July 2022, a reversal from the US$642 million BOP surplus recorded in the same month last year. The BOP deficit in July 2022 reflected outflows arising mainly from the National Government’s (NG) foreign currency withdrawals from its deposits with the BSP to settle its foreign currency debt obligations and pay for its various expenditures.
The BOP deficit in July brought the cumulative BOP level for January-July 2022 to US$4.9 billion deficit, higher than the US$1.3 billion deficit recorded in the same period a year ago. Based on preliminary data, this cumulative BOP deficit reflected the widening trade in goods deficit.1
The gross international reserves level declined to US$99.8 billion as of end-July 2022 from US$100.9 billion as of end-June 2022. Nonetheless, the latest GIR level represents a more than adequate external liquidity buffer equivalent to 8.3 months’ worth of imports of goods and payments of services and primary income.2
Moreover, it is also about 7.2 times the country’s short-term external debt based on original maturity and 4.6 times based on residual maturity.3
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