PH payments position swings to surplus in June 2025
Data released by the BSP on Friday showed the country's balance of payments (BOP) stood at a surplus of $226 million in June 2025.
This was a reversal from the $155-billion deficit recorded in June 2024.
The payments position takes into account Philippine transactions with the rest of the world during a specific period. A surplus means more funds entered the country, while a deficit means more funds exited.
'The BOP surplus reflected the foreign currency deposits by the national government with the Bangko Sentral ng Pilipinas and income from BSP investments,' the central bank said.
June's BOP surplus narrowed the year-to-date deficit from $5.8 billion in January to May 2025 to $5.6 billion in January to June 2025.
'Preliminary data indicate that the year-to-date BOP deficit was largely due to the continued trade in goods deficit. This decline was partly offset, however, by the sustained net inflows from personal remittances from overseas Filipinos, foreign borrowings by the national government, and foreign portfolio investments,' the BSP said.
The BOP position mirrored the increase in the gross international reserves (GIR), which rose from $105.2 billion as of end-May 2025 to $106.0 billion by end-June 2025.
'The latest GIR level provides a robust external liquidity buffer, equivalent to 7.2 months' worth of imports of goods and payments of services and primary income,' the BSP said.
'Moreover, it covers about 3.4 times the country's short-term external debt based on residual maturity,' it added.
The GIR are made up of foreign-denominated securities, foreign exchange, and other assets including gold.
GIR helps a country finance its imports and foreign debt obligations, stabilize its currency, and provide a buffer against external economic shocks. — BAP, GMA Integrated News
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
GMA Network
2 days ago
- GMA Network
Cebu Pacific becomes PH's first carrier with 100-strong fleet
Gokongwei-led budget carrier Cebu Pacific on Friday announced its latest historic milestone as it becomes the first local carrier to operate a 100-strong fleet after receiving the delivery of its latest aircraft — a brand new A330neo. 'Reaching 100 aircraft is more than a milestone — it reflects our unwavering commitment to make air travel accessible to more Filipinos,' said Xander Lao, Cebu Pacific president and chief commercial officer. 'With a larger fleet, we're able to operate more efficiently, enhance connectivity across the country and the region, and pass on the benefits of scale through even lower fares,' said Lao. The airline's 100-aircraft milestone came amidst increasing demand for air travel. In June alone, Cebu Pacific said it flew a total of 2.2 million passengers, up 7.9% from the same month last year. From January to June 2025, the airline said it has flown 13.9 million passengers, up 21% from 11.5 million in the first half of 2024. Cebu Pacific said the latest A330neo aircraft is also the 12th aircraft of its kind to join its fleet, reinforcing the airline's position as the largest A330neo operator in the Asia-Pacific. The 459-seater aircraft, which arrived in Manila from Airbus' facility in Toulouse, France, is the second of four A330neos expected to join Cebu Pacific's fleet this year — the first of which arrived on March 28. The airline is expecting a total of seven aircraft to be delivered in 2025. Cebu Pacific's fleet is diversified with a mix of 12 Airbus A330s, 40 Airbus A320s, 26 Airbus A321s, and 22 ATR turboprop aircraft. —LDF, GMA Integrated News
GMA Network
2 days ago
- GMA Network
PH payments position swings to surplus in June 2025
The Philippine payments position swung to a surplus in June due to the national government's foreign currency deposits with the Bangko Sentral ng Pilipinas (BSP) and the central bank's investments. Data released by the BSP on Friday showed the country's balance of payments (BOP) stood at a surplus of $226 million in June 2025. This was a reversal from the $155-billion deficit recorded in June 2024. The payments position takes into account Philippine transactions with the rest of the world during a specific period. A surplus means more funds entered the country, while a deficit means more funds exited. 'The BOP surplus reflected the foreign currency deposits by the national government with the Bangko Sentral ng Pilipinas and income from BSP investments,' the central bank said. June's BOP surplus narrowed the year-to-date deficit from $5.8 billion in January to May 2025 to $5.6 billion in January to June 2025. 'Preliminary data indicate that the year-to-date BOP deficit was largely due to the continued trade in goods deficit. This decline was partly offset, however, by the sustained net inflows from personal remittances from overseas Filipinos, foreign borrowings by the national government, and foreign portfolio investments,' the BSP said. The BOP position mirrored the increase in the gross international reserves (GIR), which rose from $105.2 billion as of end-May 2025 to $106.0 billion by end-June 2025. 'The latest GIR level provides a robust external liquidity buffer, equivalent to 7.2 months' worth of imports of goods and payments of services and primary income,' the BSP said. 'Moreover, it covers about 3.4 times the country's short-term external debt based on residual maturity,' it added. The GIR are made up of foreign-denominated securities, foreign exchange, and other assets including gold. GIR helps a country finance its imports and foreign debt obligations, stabilize its currency, and provide a buffer against external economic shocks. — BAP, GMA Integrated News
GMA Network
3 days ago
- GMA Network
20% tax on interest income corrects ‘inequitable' system, says DOF
Banks this month started to implement the uniform 20% final withholding tax (FWT) on interest income, regardless of the term or currency denomination, in line with the passage of the Capital Markets Efficiency Promotion Act (CMEPA), signed into law by President Ferdinand 'Bongbong' Marcos Jr. The measure has gained public attention, perhaps due to confusion as several online posts have circulated online that it imposes a 20% tax on total savings or bank deposits. In a statement, the Department of Finance clarified that only the interest earned from a depositor's savings in a bank is taxed 20%, and not the amount of savings itself. 'Huwag maniwala sa fake news. Maging mapanuri sa mga articles at posts na kumakalat online na ginawa para magpakalat ng maling impormasyon,' the DOF said. (Do not believe fake news. Be critical of articles and posts circulating online that were made to spread false information.) Under CMEPA or Republic Act 122141 signed into law in May, all interest income deposited in banks are charged a 20% withholding tax, which local banks started to implement on July 1, 2025. 'A final tax of 20% is hereby imposed upon the amount of interest yield, or other monetary benefit earned or received from any currency bank deposit, deposit substitute, trust fund, or other similar arrangements,' Section 6 of the measure reads. The passage of CMEPA brought about amendments to several provisions of the National Internal Revenue Code, as it sought to 'harmonize' and simplify taxation of passive income across financial instruments and encourage wider public participation in the country's capital markets. Prior to the uniform rate, taxes were tiered and based on the maturity or lock-in periods — 20% for those less than three years; 12% for three years to less than four years; 5% for four years to less than five years; exemptions for more than five years; and 15% for foreign currency deposit units (FCDUs) or dollars. 'The CMEPA merely corrects this outdated and inequitable system that placed a heavier burden on ordinary Filipinos who do not have the extra cash to put in banks for longer periods,' the Department of Finance (DOF) said in a statement released Thursday. Citing estimates from the Bangko Sentral ng Pilipinas (BSP), the DOF said 99.6% of total deposits were already subject to the 20% tax rate, while 0.4% enjoyed preferential rates. 'This special tax treatment favored depositors who can afford to park their savings in long-term deposits, making the tax unfair for short-term depositors who face liquidity issues and need immediate access to their funds,' the DOF said. The finance department also clarified that the 20% rate will only be imposed on the interests earned, and not on the total savings or bank deposits. 'Hindi binubuwisan ang kabuuang halaga ng perang naka-deposito sa bangko. Sa halip, ang interes lamang na kinikita nito ang binubuwisan (The total amount deposited in banks is not taxed. Instead, only the interest earned is taxed),' it said in a separate post on its Facebook account. The DOF also clarified that the unified rate does not apply to provident savings programs under the Social Security System (SSS) and the Home Development Mutual Fund or Pag-IBIG such as the MP2, which are exempt from tax. Capital markets With the measure, the DOF is optimistic that more individuals will look to the capital markets, as it also reduced the stock transaction tax (STT) rate to 0.1% from 0.6% previously, and the documentary stamp taxes (DST) on original issuance of shares to 0.75% from 1%. It likewise removed the DST on collective investment schemes. It also imposes a uniform 0.75% DST on bonds, debentures, and certificates of stock or indebtedness issued in foreign countries, regardless of jurisdiction, which the government said reinforces neutrality in the tax system. 'These measures are seen to cut transaction costs, encourage market participation and financial planning, boost market liquidity, make the country's equities market regionally competitive, and increase capital market growth,' it said. CMEPA also provides an additional 50% tax deduction to the actual contributions of employers who contribute an amount equal to or greater than their employees' contributions to Personal Equity and Retirement Accounts (PERA). The DOF estimates CMEPA to generate P9.0-billion worth of revenues from 2025 to 2028, the end of the term of the current administration. It is expected to raise P500 million this year; P1.6 billion in 2026; P2.8 billion in 2027; and P4.1 billion in 2028. The government is looking to generate P4.520 trillion in 2025 and P4.983 trillion in 2026 based on the latest report of the Development Budget Coordination Committee (DBCC). — BM, GMA Integrated News
