BOP surplus climbs to 5-month high in February

The Philippines’ balance of payments (BOP) position recorded a significant turnaround in February, posting a surplus of USD3.1 billion — the highest level in five months, according to data released by the Bangko Sentral ng Pilipinas (BSP) on Wednesday.

This marked a sharp reversal from the USD196 million deficit recorded in the same month last year and was the strongest surplus since September 2024, when the BOP reached USD3.52 billion.

The BSP attributed the February surplus to the national government’s net foreign currency deposits with the central bank, which included proceeds from the Republic of the Philippines (ROP) Global Bonds, along with income from the BSP’s foreign investments.

Despite this positive development, the BOP position for the first two months of 2025 still posted a cumulative deficit of USD992 million.

The BOP reflects a country’s overall transactions with the rest of the world, providing insight into the economy’s ability to pay for imports and service external debt.

The central bank also reported that gross international reserves (GIR) rose to USD107.4 billion by the end of February, up from USD103.3 billion in January. This reserve level is sufficient to cover 7.4 months of imports and payments of services and primary income, and is around 3.8 times the country’s short-term external debt.

Reyes Tacandong and Co. senior adviser Jonathan Ravelas called the February surplus "quite impressive" and noted that it signals stronger economic activity and investor confidence.

However, Ravelas added, "The deficit seen over the first two months suggests there are still challenges that need to be addressed. Maintaining a balanced approach to fiscal and monetary policy will be essential to sustaining these gains while managing potential risks."