PH reserves stay robust despite March BOP deficit

The Philippines' gross international reserves (GIR) remained at a healthy level of USD106.7 billion at the end of March 2025, according to the Bangko Sentral ng Pilipinas (BSP), despite a USD2-billion deficit in the country’s balance of payments (BOP) for the month.

The latest GIR figure represents a slight dip from February’s USD107.4 billion but still provides a strong buffer, equivalent to 7.4 months' worth of imports of goods and payments of services and primary income, the BSP said in a statement released Monday.

“This level of reserves also covers about 3.6 times the country’s short-term external debt based on residual maturity,” the BSP added, exceeding the three-month import coverage benchmark recommended by the International Monetary Fund (IMF) and the five to six months suggested by ASEAN standards.

The BOP deficit in March marked a reversal from the USD1.2-billion surplus recorded in the same month last year. The BSP attributed the shortfall mainly to the government’s foreign debt payments and foreign exchange transactions.

Year-to-date, the cumulative BOP deficit reached USD3 billion, significantly higher than the USD238-million surplus posted in the first quarter of 2024.

Despite the widening trade-in-goods deficit that contributed to the overall BOP gap, the BSP said inflows from overseas Filipino workers’ remittances, foreign direct investments, and official government borrowings helped cushion the impact.

Analysts view the country’s GIR as a key safeguard against external shocks and a critical measure of economic resilience, especially in a volatile global environment.