From January to June this year, the Philippines' balance of payments surplus surged to $5.016 billion, an increase of $1.732 billion compared to $3.284 billion in the same period last year, representing a growth rate of 53%.
The Bangko Sentral ng Pilipinas (BSP) attributes the increase in the country's balance of payments surplus to factors such as a significant influx of hot money, growth in commodity exports, and an increase in remittances from overseas Filipino workers. The central bank forecasts that the Philippines' balance of payments surplus will reach $6.7 billion this year and is expected to decline to $4.4 billion next year.
As of the end of June, the country's gross international reserves increased by 41.7% year-on-year to $68.996 billion, just a step away from the central bank's annual target of $70 billion. The primary reasons for this are strong returns on the central bank's foreign investments and an 11% appreciation in gold reserves. However, foreign exchange trading income fell by 29.7%, dropping from $510 million in June last year to $359 million in June this year.
