The Philippines’ gross international reserves (GIR) climbed to $104 billion in March 2024, providing the economy additional buffer against external volatilities.
Data from the Bangko Sentral ng Pilipinas (BSP) showed that the March reserves increased from $102 billion in February.
The BSP said the latest GIR level represented a more than adequate external liquidity buffer equivalent to 7.7 months’ worth of imports of goods and payments of services and primary income.
It was also about 6.1 times the country’s short-term external debt based on original maturity and 3.7 times based on residual maturity.
“The month-on-month increase in the GIR level reflected mainly the national government’s net foreign currency deposits with the BSP, upward valuation adjustments in the value of the BSP’s gold holdings due to the increase in the price of gold in the international market and net income from the BSP’s investments abroad,” the BSP said.
It said net international reserves—the difference between the BSP’s reserve assets (GIR) and reserve liabilities which include short-term foreign debt and credit and loans from the International Monetary Fund, also went up by $1.8 billion to $103.8 billion as of end-March from $102.0 billion as of end-February.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said the country’s GIR level was still way above the minimum international threshold of 3 to 4 months.
“[This] could still provide greater buffer/support/cushion on the peso exchange rate vs. any speculative attacks. For the coming months, the country’s GIR could still be supported by the continued growth in the country’s structural inflows from OFW remittances, BPO revenues, exports [though offset by imports] and relatively fast recovery in foreign tourism revenues,” Ricafort said.
Ricafort said the GIR was still relatively high, and this could further strengthen the country’s external position, which is a key pillar for the continued favorable credit ratings for the second straight year.
“[It’s] a sign of resilience despite the COVID-19 pandemic that caused downgrades in other countries around the world,” he said.
