The Philippines posted a USD3.1 billion balance of payments (BOP) surplus in February 2025, a sharp turnaround from the USD196 million deficit recorded in February 2024.
According to the Bangko Sentral ng Pilipinas (BSP), the surplus was driven by the national government’s net foreign currency deposits, which include proceeds from Republic of the Philippines (ROP) Global Bonds, as well as income from the BSP’s foreign investments.
Despite the monthly surplus, the cumulative BOP position registered a USD992 million deficit as of end-February 2025, slightly higher than the USD936 million deficit recorded in the same period last year.
Preliminary data show that the year-to-date deficit mainly reflected a wider trade-in-goods deficit and net outflows from foreign portfolio investments.
These were partly offset by net receipts from foreign borrowings by the national government and personal remittances.
The improved BOP position also mirrored the rise in gross international reserves (GIR) to USD107.4 billion as of end-February 2025, up from USD103.3 billion in January.
This GIR level provides a strong external liquidity buffer, equivalent to 7.4 months’ worth of imports of goods and payments of services and primary income.
It also covers approximately 3.8 times the country’s short-term external debt based on residual maturity.
According to the Philippine Statistics Authority’s International Merchandise Trade Statistics, the trade deficit for January 2025 widened to USD5.1 billion, compared to USD4.4 billion in January 2024.
Short-term external debt based on residual maturity includes outstanding external debt with an original maturity of one year or less, plus principal payments due within 12 months on medium- and long-term loans by both public and private sectors.
The BSP noted that the latest GIR level ensures the country’s ability to meet BOP financing needs—such as import and debt service payments—even under extreme conditions where export earnings and foreign loans are unavailable.
