Philippines’ forex reserves hit $105.65 billion

The Philippines’ gross international reserves (GIR) rose to $105.65 billion at the end of July 2024, up from $105.19 billion at the end of June, according to preliminary data from the Bangko Sentral ng Pilipinas (BSP).

The latest GIR level provides a robust external liquidity buffer, equating to 7.8 months’ worth of imports of goods and services, and primary income.

It also covers 6.1 times the country’s short-term external debt based on original maturity and 3.8 times based on residual maturity.

The month-on-month increase was primarily attributed to upward valuation adjustments in the BSP’s gold holdings due to the rise in gold prices on the international market.

Additional contributions came from net income from the BSP’s overseas investments and the National Government’s net foreign currency deposits with the BSP.

Net international reserves, which account for the difference between the BSP’s reserve assets and reserve liabilities, also saw an increase, climbing by $0.46 billion to $105.62 billion from $105.16 billion in the previous month.

The BSP’s reserve assets are composed of foreign investments, gold, foreign exchange, reserve position in the International Monetary Fund (IMF), and special drawing rights.

By conventional standards, GIR adequacy is measured if it can cover at least three months’ worth of the country’s imports and primary income payments.

The current level far exceeds this benchmark, reflecting the country’s stable economic footing.