BOP posts $318 M deficit in August

MANILA, Philippines (Xinhua) - The balance-of-payments (BOP) position registered a deficit of $318 million in August, the country's central bank said today.

The BOP position for August is the first deficit posted for the year and a reversal from the $1.099 billion of surplus posted the month before.

Central Bank Governor Amando M. Tetangco Jr. said speculations that the US Federal Reserve would taper its stimulus program pressured investors, increasing outflows.

"That was due to financial market volatility arising from the uncertainty about the (US Fed) taper," Tetangco said. He expected the volatility to be "temporary" following the Fed's recent decision to keep the monetary stimulus in place.

Foreign portfolio investments posted a net outflow of 441.85 million US at the end of August. This offset the country's dollar earnings from exports, remittances from overseas Filipino workers and revenues from the outsourcing and tourism industries.