The Philippines’ gross international reserves (GIR) edged higher to $105.323 billion as of end-June, up slightly from $105.176 billion in May, the Bangko Sentral ng Pilipinas (BSP) reported late Monday.
The latest GIR level — the highest since March’s $106.669 billion — was supported by fresh foreign currency deposits from the national government and the central bank’s earnings from offshore investments, the BSP said.
Year-on-year, the GIR in June rose 0.12 percent from $105.188 billion, which the BSP said signals continued stability in the country’s external buffers despite lingering global uncertainty.
The BSP said the June reserve level is enough to cover 7.2 months’ worth of imports and 3.3 times the country’s short-term external debt based on residual maturity — both indicators of a healthy external liquidity position.
“GIR helps a country finance its imports and foreign debt obligations, stabilize its currency, and provide a buffer against external economic shocks,” the central bank said.
As of end-June, the BSP’s foreign investments remained the largest component of GIR, amounting to $85.656 billion. Gold holdings followed at $13.801 billion, while foreign exchange reserves stood at $1.238 billion.
The BSP’s reserve position in the International Monetary Fund (IMF) reached $732 million, while special drawing rights (SDRs) — the IMF’s reserve currency — were valued at $3.894 billion.
Together, these assets form the country’s first line of defense against volatility in capital flows, abrupt currency movements, and unforeseen external financing needs. — Lee Chipongian
