The Philippines’ dollar reserves declined in July due to lower global gold prices and the national government’s drawdowns on its foreign currency deposits, the Bangko Sentral ng Pilipinas (BSP) reported Thursday.
Preliminary data show that the gross international reserves (GIR) — a measure of the ability to settle import payments and service foreign debt — stood at $105.703 billion in July, down from $105.998 billion in June, and lower than the $106.737 billion in July 2024.
“The latest GIR level provides a robust external liquidity buffer, equivalent to 7.2 months’ worth of imports of goods and payments of services and primary income,” the BSP said in a statement. Conventionally, the GIR is viewed to be adequate if it can finance at least three-months’ worth.
The latest level covers about 3.4 times the country’s short-term external debt based on residual maturity.
Meanwhile, net international reserves or the difference between the reserve assets and reserve liabilities, fell by $0.3 billion to $105.7 billion from $106.0 billion. — Jon Viktor D. Cabuenas/RSJ, GMA Integrated News
