The country’s balance of payments (BOP) position in July 2017 posted a deficit of US$678 million, higher by US$109 million than the previous month’s shortfall of US$569 million. This month’s deficit brought the year-to-date BOP deficit to US$1.384 billion from the US$706 million recorded during the first six months of the year. The higher deficit was attributed to foreign exchange operations of the BSP and to payments made by the National Government for its maturing FX obligations during the review month. Outflows during the month were partially tempered by net foreign currency deposits of the National Government and BSP’s income from investments abroad. BSP’s FX operations remained driven by increasing market demand for FX largely to finance capital goods imports. The BSP expects that the recovery in merchandise exports and higher-than-expected overseas remittances and BPO revenues would mitigate the current account and the overall balance of payments for the whole year of 2017. BSP’s forecast balance of payments for 2017 is currently at US$500 million shortfall.