Philippines’ reserves rise to $106.9 billion in August

The Philippines’ gross international reserves (GIR) rose to $106.9 billion as of end-August 2024, marking an increase from the $106.7 billion recorded in July, according to preliminary data from the Bangko Sentral ng Pilipinas (BSP).

The GIR serves as a vital buffer, providing a more-than-adequate external liquidity reserve equivalent to 7.9 months’ worth of imports and payments for services and primary income.

It also covers the country’s short-term external debt 6.1 times based on original maturity and 3.7 times based on residual maturity.

The month-on-month increase in reserves was attributed mainly to the net income from the BSP’s investments abroad, contributing to the stability of the country’s external financial position.

Net international reserves, which subtract reserve liabilities such as short-term foreign debt and loans from the International Monetary Fund (IMF), also increased by $0.2 billion, matching the $106.9 billion GIR as of end-August.

The BSP’s reserve assets consist of foreign investments, gold, foreign exchange, reserve positions in the IMF, and special drawing rights.

The current GIR level provides sufficient cover for the country’s foreign liabilities, both public and private, due within the next 12 months.