The country’s balance of payments (BOP) surplus increased further to $6.43 billion as of end-October, way over the Central Bank of the Philippines forecast of $2.6 billion for this year and 2013.

For the month of October, BSP data showed an excess to BOP of $604 million, lower than September’s $751 million. In the last 10 months, the highest monthly recorded BOP surplus was in July of $3.18 billion. Compared to the same period in 2011, the 10-month BOP surplus was lower by $3.49 billion. Last year’s BOP position totalled $10.18 billion.

The BOP, which is composed of foreign direct investments and foreign portfolio investments or hot money, export receipts and remittances from overseas Filipinos, has remained in surplus since 2005. The robust external accounts position has enabled the BSP to become a creditor instead of a debtor to the International Monetary Fund. It has a current standby lending facility of $1 billion plus a maximum of $850 million reserved for other quota-based credit arrangements, writes Lee Chipongian for Manila Bulletin News.