THE Philippines’ gross international reserves (GIR) fell to a seven-month low of $105.51 billion last month after hitting a record $113.26 billion in February, the Bangko Sentral ng Pilipinas (BSP) reported late Tuesday.
Despite the decline, the BSP said the latest level “provides a robust external liquidity buffer,” adding that it was enough for 7.1 months’ worth of imports of goods and payments of services and primary income.
It was also about times the country’s short-term external debt based on residual maturity.
“These reserves serve as a buffer against external economic shocks, enabling a country to pay for its imports, service its foreign debt obligations, and stabilize its currency,” the central bank said.
The GIR level is considered adequate if “it can finance at least three months’ worth of the country’s imports of goods and payments of services and primary income.”
It is also considered sufficient “if it provides at least 100-percent cover for the payment of the country’s foreign liabilities, public and private, falling due within the immediate twelve-month period.”
GIR consists of the BSP’s foreign investments, gold, foreign exchange, reserve position in the International Monetary Fund and special drawing rights.
Sought for comment, SMIC Group economist Robert Dan Roces said the decline was mainly due to “FX (foreign exchange) intervention, debt payments and a strong dollar revaluation.”
“That said, reserves are still ample and doing their job as a buffer. Near term, expect some volatility, but the level remains sound and should stabilize as inflows recover,” he added.
The central bank expects GIR to end 2026 at a higher $111 billion instead of $110 billion and rise to $112 billion next year.
