The Philippines posted a $1.5 billion balance of payments deficit in July, widening the seven-month shortfall to $5.3 billion as trade deficits and portfolio outflows offset worker remittances.
Data from the Bangko Sentral ng Pilipinas showed that the January-July deficit narrowed from $5.8 billion a year earlier, but dragged gross international reserves down to $103.3 billion from $104.7 billion in June.
Despite the drop, the BSP said reserve buffers remain adequate, providing 6.7 months of import cover against the standard three-to-four-month international benchmark.
The country’s reserves include foreign securities, currencies and deposits, gold, special drawing rights and other reserve assets held by the central bank.
