The Bangko Sentral ng Pilipinas (BSP) reported 52.3% decline in its foreign currency and overseas deposits by the end of November 2024, reaching $1.877 billion.
According to BSP data, deposits with foreign banks fell sharply by 58.6% to $1.070 billion. These deposits are held in banks headquartered outside the Philippines.
Similarly, deposits with other central banks, the International Monetary Fund (IMF), and the Bank for International Settlements (BIS) dropped by 40.18% to $807.81 million.
The BSP’s foreign currency and deposits contribute to the country’s gross international reserves (GIR), which stood at $106.26 billion as of December last year, higher than the $103.75 billion recorded at the end of 2023.
The GIR serves as the country’s external liquidity buffer, capable of covering 7.5 months’ worth of imports and payments for services and primary income. It also offers a 3.7x coverage of short-term external debt based on residual maturity.
As of the end of 2024, the BSP’s reserve assets were composed of $90.022 billion foreign investments, $11 billion gold reserves, $1/37 billion foreign exchange holdings, $675 million in reserve position in the IMF, and $3.76 billion in special drawing rights.
According to the BSP, the GIR remains sufficient to finance at least three months’ worth of imports and covers 100% of short-term public and private liabilities maturing within a year.
While the BSP’s foreign investments and gold reserves remained relatively stable, the sharp decline in foreign currency and deposits reflects adjustments in reserve management to maintain overall external liquidity.
