BSP: Overall BOP to reverse yr-earlier deficit to P2-B surplus
The Bangko Sentral ng Pilipinas (BSP) has cut its projection for the country’s dollar reserves for 2015, in line with its trimmed remittances estimate.
The central bank revised its estimate for the Philippines’ gross international reserves (GIR) this year to $80.7 billion from a previous forecast of $81.6 billion.
Despite the downward adjustment, the new projected level would still exceed the $80.6 billion of gross reserves recorded for full-year 2014.
The expected amount of $80.7 billion would also be ample enough to cover nearly 10 months’ worth of imports of goods and payments of services, the BSP said.
The lower expectation for GIR is in line with the downward adjustment in the central bank’s estimate of 2015 remittances.
As a major source of the country’s dollar reserves, cash remittances this year are expected to reach $25.3 billion, down from the BSP’s previous forecast of $25.6 billion.
The central bank said the downward revision may be traced to the impact of a stronger dollar against the currencies of major economies.
It also blamed the global “de-risking” activities adopted by banks in major markets aimed at curbing illicit money transfers for the slowdown in cash coursed through banks.
All factors considered, the BSP said current account – a major component of the country’s balance of payment (BoP) – is expected to end 2015 with a surplus of $8.9 billion.
Overall, the BoP will show a surplus of $2 billion, a reversal of the $2.9 billion shortfall recorded in 2014.