Philippines’ BoP position swings to deficit in February

The Philippines’ balance of payments (BoP) position swung to an over USD 2-billion deficit in the second month of the year, the Bangko Sentral ng Pilipinas (BSP) said late on Thursday.

Based on central bank data, the BoP position stood at a USD 2.277-billion deficit in February, a reversal from the USD 3.086-billion surplus recorded in the same month in 2025.

Month on month, the BoP position ballooned from the USD 373-million gap recorded in January.

February’s tally brought the country’s two-month BoP deficit to USD 2.651 billion, wider than the USD 992-million gap seen in the comparable year-ago period.

BoP refers to the country’s economic transactions with other nations. A deficit shows that the country spent more than it received, while a surplus indicates more funds entered into the country.

The central bank sees the Philippines’ BoP deficit widening to USD 5.9 billion or -1.2% of its gross domestic product this year.

Meanwhile, revised BSP data showed that the country’s dollar reserves hit a fresh high of USD 113.3 billion at end-February, exceeding the previous record of USD 112.707 billion at end-September 2024.

Month on month, the gross international reserves (GIR) edged up by about 0.6% from USD 112.615 billion in January.

As of February, the country’s GIR level translated to 7.5 months’ worth of imports of goods and payments of services and primary income, higher than the three-month standard.

“Specifically, the latest GIR level ensures the availability of foreign exchange to meet balance of payments financing needs, such as for payment of imports and debt service, in extreme cases when there are no export earnings or foreign loans,” the BSP said in a statement.

It is also enough to cover about 4.3 times the country’s short-term external debt based on residual maturity.

GIR comprises foreign-denominated securities, foreign exchange, and other assets such as gold. It enables a country to finance imports and foreign debts, maintain the stability of its currency, and safeguard itself against global economic disruptions.

The BSP expects the end-2026 GIR level to reach USD 110 billion. — Katherine K. Chan, Reporter