THE country’s gross international reserves (GIR) dropped to a 15-month low of $104.1 billion at the end of April, the Bangko Sentral ng Pilipinas (BSP) reported late on Thursday.
GIR comprises foreign-denominated securities, foreign exchange and other reserve assets, such as gold. It helps guarantee adequate dollar liquidity to meet the country’s import requirements and foreign debt obligations, addresses currency volatility, and acts as a buffer against external economic shocks.
The last time the level was lower was in January 2025 when it hit $103.3 trillion.
Despite the decline, the central bank said GIR was still a “robust external liquidity buffer” — enough for 6.9 months’ worth of imports of goods and payments of services and primary income and equivalent to 3.8 times the country’s short-term external debt based on residual maturity.
“The latest GIR level ensures availability of foreign exchange to meet balance of payments financing needs, such as for payment of imports and debt service, in extreme conditions when there are no export earnings or foreign loans,” the BSP said.
Reyes Tacandong & Co. senior adviser Jonathan Ravelas said the drop was likely due to the central bank responding to the peso’s weakness.
“In April, the BSP likely sold dollars to smooth excessive peso volatility, which explains the sharp decline in the FX (foreign exchange) component. Add to that routine external payments, some valuation losses in bonds and gold, and cautious global investors, and reserves naturally dipped,” he said.
“Bottom line: the BSP is using its reserves as intended, the external position remains sound, and this move reflects prudent management amid global uncertainty, not a weakening of fundamentals,” Ravelas added.
