BSP books P15.8B forex gain from January to May

By Eileen Mencias

The Bangko Sentral ng Pilipinas reported a P15.82-billion gain from foreign exchange fluctuation in the first five months of the year.

This was a reversal of the P110 million foreign loss incurred a year ago.

The forex gain brought BSP’s net income to P41.44 billion from P30.21 billion a year ago.

A big part of the BSP’s assets, specifically its international reserves, are in foreign currencies and a depreciation of the peso results in a bigger valuation for these assets when stated in peso terms.

The peso was trading at the P50 level against the dollar in January but depreciated to the P52 level in May. In contrast, the peso was trading at the P48 level in January 2021 and appreciated to the P47 level in May last year.

BSP reigstered revenues of P73.02 billion, slightly lower than the P73.38 billion it reported in the same period last year. Its expenses, however, increased to P47.38 billion from P43.06 billion a year ago. (Eileen Mencias)