InterAksyon.com means BUSINESS
MANILA - (UPDATED 6:21 p.m.) The country's balance of payments surplus fell sharply last month, according to data released by the Bangko Sentral ng Pilipinas.
In a report, the BSP said the country's BOP surplus dropped 81 percent to $582 million in August from $3.182 billion the month before. This led the eight-month tally likewise to fall 43 percent to $5.080 billion from a year ago's $9.002 billion.
The end-August surplus however is almost twice the BSP's full-year forecast of $2.6 billion, thus bolstering the case for a revision of this target when the policy-making Monetary Board sits down to review its macro assumptions by next month at the earliest.
The BOP summarizes a country's economic transactions with the rest of the world, with a surplus indicating dollar earnings outstripping expenditures. Sustained surpluses help build up the country's gross international reserves, an ample supply of which helps prop up the peso and keep domestic inflation at bay.
The country's foreign exchange reserves climbed to $80.8 billion in the first eight months of the year, well above the BSP's full-year forecast of $78 billion.
Alongside a review of its BOP assumption, BSP Governor Amando M. Tetangco Jr. earlier said the central bank would upgrade its full-year GIR forecast in light of the strong foreign capital inflows brought about by weakness in advanced economies.
“This should continue to provide fundamental support to the peso," Tetangco said in an email to reporters.
"That said, the BSP is watchful of market activities, and is ready for official action as needed to ensure that movements in the exchange rate remain within what the fundamentals dictate,” he added.
BSP data show the peso losing value and averaging 42.045 vis-a-vis the US dollar in August from 41.905 in July.
On Wednesday, the local currency firmed up to 41.61 to the greenback from the previous day's 41.75. Trading volume jumped to $1.021 billion from Tuesday's $884 million.
InterAksyon.com means BUSINESS
BUSINESS NEWS
