The Central Bank of the Philippines published balance of payments data showing a deficit of USD 167 million in July 2025, reversing the USD 62 million surplus recorded in July 2024. The outcome was attributed to the national government drawing down its foreign currency deposits with the Bangko Sentral ng Pilipinas to service external debt obligations. The July result brought the cumulative balance of payments position to a USD 5.8 billion deficit for January to July 2025, reversing the USD 1.5 billion surplus in the same period of 2024. Preliminary data linked the year-to-date deficit mainly to the continued trade in goods deficit, partly offset by net inflows from personal remittances, national government foreign borrowings, and foreign portfolio investments; the trade deficit for January to June 2025 was USD 24.0 billion, down from USD 25.1 billion a year earlier. The balance of payments position mirrored a decline in gross international reserves from USD 106.0 billion at end-June 2025 to USD 105.4 billion at end-July 2025, which the central bank reported as equivalent to 7.2 months of imports of goods and payments of services and primary income and about 3.4 times short-term external debt based on residual maturity.
Central Bank of the Philippines 2025-08-19
Central Bank of the Philippines reports July 2025 balance of payments deficit of USD 167 million as reserves fall to USD 105.4 billion
The Central Bank of the Philippines reported a balance of payments deficit of USD 167 million in July 2025, reversing a USD 62 million surplus from July 2024, due to the national government drawing down foreign currency deposits to service external debt. The cumulative deficit for January to July 2025 reached USD 5.8 billion, driven by a trade in goods deficit, despite net inflows from remittances, government borrowings, and portfolio investments. Gross international reserves declined to USD 105.4 billion by end-July 2025, covering 7.2 months of imports and 3.4 times short-term external debt.