By The Financial District
Apr 82 min
The Philippines' gross international reserves (GIR) have reached $104.0 billion as of the end of March 2024, marking an increase from the previous month's level of $102.0 billion.
The increase in the GIR level from the previous month can be attributed to several factors, including the National Government's net foreign currency deposits with the Bangko Sentral ng Pilipinas (BSP). I Photo: Bangko Sentral ng Pilipinas Facebook
This level of GIR serves as a robust external liquidity buffer, equivalent to 7.7 months' worth of imports of goods and payments of services and primary income.
Additionally, the GIR level is notably higher than the country's short-term external debt, with a ratio of 6.1 times based on original maturity and 3.7 times based on residual maturity.
This demonstrates the country's solid financial position and ability to meet its financial obligations.
The increase in the GIR level from the previous month can be attributed to several factors, including the National Government's net foreign currency deposits with the Bangko Sentral ng Pilipinas (BSP), upward valuation adjustments in the BSP's gold holdings due to the rise in the international price of gold, and net income from the BSP's investments abroad.
Furthermore, the net international reserves, which represent the difference between the BSP's reserve assets (GIR) and reserve liabilities (short-term foreign debt and credit and loans from the International Monetary Fund), also saw an increase to $103.8 billion as of the end of March 2024, up from $102.0 billion at the end of February 2024.
Overall, the Philippines' strong GIR level reflects the country's sound economic fundamentals and its ability to weather external financial challenges while maintaining stability in its financial system.