Gross Reserves Down To $98.1 Billion

The country's gross international reserves (GIR) decreased to US$98.1 billion as of end-September 2023 from US$99.6 billion as of end-August 2023, according to data from the Bangko Sentral ng Pilipinas.

The BOP deficit in September 2023 reflected net outflows primarily from the National Government’s (NG) payments of its foreign currency debt obligations.

The latest GIR level represents a more than adequate external liquidity buffer equivalent to 7.3 months’ worth of imports of goods and payments of services and primary income.

Additionally, the GIR level is about 5.7 times the country’s short-term external debt based on original maturity and 3.6 times based on residual maturity.

The decline in the GIR was due to the country’s overall balance of payments (BOP) position, which posted a deficit of US$414 million in September 2023, lower than the US$2.3 billion BOP deficit recorded in the same month last year.

The BOP deficit in September 2023 reflected net outflows primarily from the National Government’s (NG) payments of its foreign currency debt obligations.

Despite the deficit in September, the cumulative BOP position registered a surplus of US$1.7 billion in the first three quarters of the year, which was a reversal from the US$7.8 billion deficit recorded in the same period a year ago.

This development mainly reflected the improvement in the balance of trade and higher net inflows from personal remittances, trade in services, and foreign borrowings by the national government, according to preliminary data.

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