PH posts higher foreign reserves, reinforces currency stability

The Philippines’ gross international reserves (GIR) rose slightly to USD105.3 billion in June from USD105.2 billion in May, according to data released by the Bangko Sentral ng Pilipinas (BSP).

The BSP attributed the increase to foreign currency deposits by the national government and income from its overseas investments.

GIR, which refers to the central bank’s holdings of foreign-issued securities, monetary gold, and foreign exchange, plays a key role in stabilizing the country’s currency, covering import needs, and ensuring the ability to meet external debt obligations.

The current GIR level is sufficient to cover 7.2 months’ worth of imports and 3.3 times the country’s short-term external debt based on residual maturity, well above the internationally accepted adequacy thresholds.

Economists view the latest GIR data as a positive signal for the country’s external position. Structural inflows from remittances, BPO revenues, exports, and tourism are expected to continue supporting reserve levels in the months ahead.

The BSP reiterated its commitment to maintaining a strong external liquidity buffer as part of its price and financial stability objectives.