Month-on-month excess to BoP amounted to $439 million from $4 million the same period in 2004 and $297 million in August this year.

According to Bangko Sentral ng Pilipinas Governor Amando M. Tetangco Jr.: "The January-September BoP surplus was achieved following strong growth in OFW (overseas Filipino workers) remittances and foreign investment inflows both direct and portfolio, improved balance of trade, higher government external borrowings and improved investment income."

The year-on-year BoP surplus is a huge reversal to the $176 million deficit recorded in September 2004.

The full-year BoP projection is a surplus of $853 million compared to 2004’s actual $282 million.

In the meantime Tetangco said earlier that the BoP is aiming for a surplus of $900 million in 2006.

The BoP is a summary of the country’s transactions with the rest of the world and includes exports less imports, net portfolio and equity investments, income and other transfers. Filipino migrant workers’ remittances are one of the important BoP components.

The BoP is a closely watched indicator since persistent deficits would erode the country’s dollar reserves. A sharp fall in the country’s dollar hoard would put pressure on the peso and bid up the prices of goods and services sold locally.

The BSP said foreign reserves remain at comfortable levels. The gross international reserve target for 2005 is $16-$17 billion, same as in 2004. As of endAugust GIR level rose to a new all-time high of $18 billion.

The GIR was adequate to cover about 4 months of imports of goods and payments of services and income. This level was also equivalent to 3.2 times the country’s short-term debt based on original maturity and 1.8 times based on residual maturity.