Experiencing the fastest economic expansion and extremely strong cyclical upturn in tax revenue, we still managed to spend more than we earned and recorded a budget deficit every single year during the boom.
At the same time, our external position will remain in surplus, with the BOP surplus expected to range between $ billion by yearend. This means that the peso will have fundamental support. Consequently, there will be occasion for the BSP to build up its international reserves to temper exchange rate volatilities.