Balance of Payments
POSTED ON August 13, 2019
How finance folk use it
The Balance of Payments shows how money goes in and out of the Philippines. Think of it as the country’s statement of account. It includes everything from imports, to exports, to investments, to foreign donations.
Is it good or bad?
The Balance of Payments affects how strong the Peso is. If the country is losing money (deficit), that could weaken our currency which makes our exports become attractive and money from OFWs become more valuable. If the country is making money (surplus), that could strengthen our currency which makes importing becomes cheaper lowers inflation.
What it means for you
Based on the Balance of Payments, you can get an idea of whether the Peso will go up or down. It also gives you an idea if foreigners are investing in the country, which usually leads to markets going up.