BALANCE OF PAYMENTS OF THE PHILIPPINES

When we heard the word Balance of Payments, the first thing that comes to our
mind is BOP is related to money, imports and exports of a country. Balance of
payments is a vital to a country because it reveals its economic status. It shows whether
a country saves enough to pay its imports and reveals whether the country produces
enough output to support the country’s growth. In BOP, the country must have more
exports than imports in order to have a surplus.
In the situation of the Philippines today and during pandemic, I’m glad to know that
our country’s balance of payments posts surplus of 80 million US dollars last June 2020
according to Bangko Sentral of the Philippines that brings a total balance of payments
surplus to $4.109 Billion in the first semester of the year compare to $404 million BOP
deficit recorded in the same month last year. This means that this will reflect to the
development of our country’s monetary, financial and external sectors. However, it’s
mainly because we had to borrow money to the world bank in order to pay our foreign
currency debts obligations.
Remittances is a great factor that our foreign exchange earnings increased and helps
our country to transact internationally. For me, OFWs are not just a person who works
for their families in the Philippines, they work for the country. Their remittances have a
huge impact to the economy’s growth as well as in Balance of Payment. No wonder that
we already had a surplus in BOP because remittances increased by 2783000 USD
Thousand in July from 2465332.60 USD Thousand in June of 2020. This only shows
how we should give credits do our OFWs who’s working hard abroad.

However, it’s sad to say that our exports declined by

it’s sad to say that we had to borrow money to cover Despite the crisis we are facing
in terms of health, politics and national security, it’s a great news to hear that somehow
our country still manage to stand against all odds.