Updated: May 19, 2011 18:03
MANILA: The Philippines is on track to meet the central bank’s forecast of a balance of payments (BOP) surplus of $6.7 billion this year, and its strong external payments position should provide support to the peso and help mitigate imported inflation, Governor Amando Tetangco said.
Central bank data show the BOP surplus in the first four months of the year reached $4.58 billion, more than two thirds the central bank’s full-year estimate.
“The positive external position should provide fundamental support for the peso, and help mitigate imported inflationary pressures,” Tetangco said in a mobile text message to reporters.
The poor Southeast Asian economy stands to benefit from a strong peso as it imports most of its fuel needs and is one of the world’s largest rice buyer.
The peso has gained 1.67 percent so far this year.
Last week, Assistant Governor Cyd Amador said the central bank expected the peso to remain stable over the near term, supported by robust capital inflows and remittances from Filipinos working and living abroad.
Total remittances in March alone was $1.62 billion, near the monthly peak of $1.69 billion in December.
The central bank expects remittances to grow seven percent this year, slightly lower than an original estimate of 8 percent.