PHL registers US $ 751M BOP surplus in September ’12, end-September at US $ 5.83B

October 20, 2012 5:35 am 

MANILA, Oct. 19 — The Philippines continues to register robust dollar inflows resulting to a balance of payments (BOP) surplus of US $ 751 million last September, up from year-ago’s US $ 719 million.

Data released by the Bangko Sentral ng Pilipinas (BSP) Friday showed that surplus in the first nine months this year totalled to US $ 5.83 billion, more than twice the full-year’s US $ 2.6 billion target but lower than year-ago’s US $ 9.72 billion.

BOP is the sum of all the country’s transactions with the rest of the world.

Despite the drop in nine-month surplus, BSP Governor Amando Tetangco Jr. said inflows continue to be robust.

“This healthy level also continues to reflect the positive outlook on the country relative to advanced economies and those in the region, especially with respect to our sustained strong growth path, fiscal consolidation, and stable banking system,” he said.

The central bank chief explained that “with easy money conditions remaining in the advanced economies and as uncertainty continues to hover around the resolution of the European crisis, the Philippines continues to be a recipient of flows, which in turn have supported the peso.”

The local currency recently posted its 4.5-year high against the dollar as investors remain upbeat on the domestic economy.

Monetary officials, on the other hand, are on the look-out for volatility of the exchange rate vis-à-vis its impact on inflation.

They maintain that exchange rate in the country continues to be market-determined but admits that the central bank joins the market to address excess volatility.

Tetangco said monetary officials “are mindful of developments both global and domestic” and “are watchful of market conduct.”

“We will not tolerate excesses in exchange rate movements and will not hesitate to consider other tools in our policy tool kit,” he added. (PNA)

CTB/JS/JCF

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