MANILA -- The Philippines posted a balance of payments (BOP) deficit of $2 billion in March, reversing the $1.2 billion surplus it saw in the same month last year, the Bangko Sentral ng Pilipinas (BSP) said Monday.

The BSP said this reflects the national government's drawdowns on its foreign currency deposits with the BSP to meet its external debt obligations, as well as the BSP’s net foreign exchange operations.

Year-to-date, there is also a deficit of $3 billion, a reversal of the $238 million surplus recorded in the first quarter of 2024.

The central bank said this is because of the widening trade in goods deficit. It noted, however, that this decline was partly muted, by the continued net inflows from personal remittances, foreign direct investments, and foreign borrowings by the national government.

Meanwhile, the Philippines' gross international reserves went down to $106.7 billion, from $107.4 billion in February.

The BSP said the GIR remains a robust external liquidity buffer, equivalent to 7.4 months’ worth of imports of goods and payments for services and primary income. 

It is also 3.6 times the country’s short-term external debt based on residual maturity.

The central bank said maintaining an adequate level of reserves is critical in supporting the Philippine economy’s resilience against external shocks.

Philippines likely to see balance of payments deficit: BSP