PHL’s Reserves Hit Record High of US$112 Billion in September

The Philippines’ gross international reserves (GIR) soared to an all-time high of US$112.0 billion at the end of September 2024, up from $107.9 billion in August, according to preliminary data from the Bangko Sentral ng Pilipinas (BSP).

This new level of reserves is considered a strong external liquidity buffer, equating to 8.1 months’ worth of imports of goods and payments for services and primary income. It also stands at 6.3 times the country’s short-term external debt based on original maturity and 4.4 times based on residual maturity.

BSP officials highlighted key drivers for the month-on-month increase in GIR, which included net foreign currency deposits from the National Government, boosted by proceeds from the issuance of ROP Global Bonds.

The central bank also noted favorable upward valuation adjustments in its gold holdings due to rising gold prices in the international market and income from its overseas investments.

“The increase in reserves demonstrates the country’s solid external position,” said an official from the BSP, who emphasized that the current GIR level exceeds the international standard of three months’ import coverage, ensuring the country’s resilience against external shocks.

The net international reserves, which account for the difference between the BSP’s reserve assets and its liabilities, also saw an increase, rising by $4.2 billion to $112.0 billion at the end of September from $107.8 billion in August.

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

These reserves serve as a critical financial safety net, safeguarding the country from global financial uncertainties.

The strong GIR also reflects the government’s fiscal management efforts, with the National Government continuing to secure foreign currency deposits and the BSP maximizing returns on its investments.