In recent years the capital account has been dominated by flows in the form of portfolio investments including GDR issues, foreign direct investments and to a lesser extent, commercial borrowings and non-resident deposits, while traditionally, external aid was the only major component of the capital account.
Moreover, the BSP has implemented extraordinary liquidity measures to complement the National Government’s broad-based health and fiscal programs in mitigating the impact of COVID-19. These measures include the ₱300 billion repurchase agreement with the BTr as well as launching a package of measures to support lending to micro, small, and medium enterprises.