MANILA, Philippines – The Philippines recorded a balance of payments (BOP) surplus of US$226 million in June 2025, reversing the US$155 million deficit logged in the same month last year, the Bangko Sentral ng Pilipinas (BSP) reported.

The June surplus was attributed to foreign currency deposits by the national government with the BSP and income from the central bank’s investments.

The improved monthly performance helped narrow the year-to-date BOP deficit to US$5.6 billion from the US$5.8 billion recorded from January to May 2025.

Preliminary data showed that the BOP shortfall during the first half of the year was mainly driven by the trade in goods deficit. However, it was partly cushioned by steady net inflows from overseas Filipino remittances, foreign borrowings by the national government, and foreign portfolio investments.

The BOP position also reflected a rise in the country’s gross international reserves (GIR), which climbed from US$105.2 billion at end-May to US$106.0 billion by end-June.

The latest GIR level is sufficient to cover 7.2 months’ worth of imports and payments of services and primary income, and is about 3.4 times the country’s short-term external debt based on residual maturity.

GIR serve as the country’s financial safety net against external shocks and are composed of foreign-denominated securities, foreign exchange, and other assets, including gold.