The country’s foreign reserves remained solid in July despite a minor dip, according to the Bangko Sentral ng Pilipinas (BSP).
Data released on Thursday showed that the gross international reserves (GIR) stood at $105.7 billion by the end of July, slightly lower than the $106 billion recorded in June.
GIR includes foreign currency deposits, foreign-denominated securities, gold reserves, and other external assets. These reserves play a crucial role in supporting the country’s economic stability by covering import needs, repaying foreign debts, and helping stabilize the Philippine peso amid external shocks.
Despite the slight decline, the BSP emphasized that the GIR remains a strong external liquidity buffer. It is currently enough to cover 7.2 months’ worth of imports and payments for services and primary income. Additionally, it is sufficient to cover 3.4 times the country’s short-term external debt based on residual maturity.
By international standards, a GIR level that can cover at least three months of imports is considered adequate. The current level, according to the BSP, reflects a healthy and resilient position.
