PH quarter-on-quarter net external liability position lower by 7.3%

The Philippines’ net external liability position improved by 7.3% to USD21.1 billion as of end September 2021 against the USD22.7 billion reported for end June 2021 as per a December 29, 2021 press release by the Bangko Sentral ng Pilipinas (BSP).

This improvement comes as a result of a 1.5% quarter-on-quarter increase in the country’s total external financial assets (from USD235.3 billion in the quarter prior to USD238.7 billion as of end September 2021) offsetting the 0.7% quarter-on-quarter increase in the country’s total external financial liabilities (from USD258.0 billion in the quarter prior to USD259.8 billion as of end September 2021).

The growth in the country’s total external financial assets for the quarter ended September 2021 was driven by a 7.8% increase in the stock of residents’ other investments amounting to USD31.8 billion, a 0.8% increase in reserve assets held by the BSP amounting to USD106.6 billion, and a 0.8% increase in direct investments amounting to USD65.6 billion.

The increase in the country’s total external financial liabilities for the quarter ended September 2021 was driven by a 230.6% increase in the allocation of Special Drawing Rights (SDRs) to the country from the International Monetary Fund (IMF) amounting to USD4.0 billion alongside a 5.5% growth in non-residents’ investments in debt instruments issued by local affiliates amounting to USD47.3 billion.

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