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June 19, 2024

Gross international reserves seen stabilizing

The country’s stash of foreign currency reserves, or the gross international reserves (GIR), were seen stabilizing this year and next.

According to latest calculations by the Bangko Sentral ng Pilipinas (BSP), the foreign currency reserves last year totalling $107.69 billion should total more or less $108 billion this year.

Next year, the amount of foreign currency reserves held by the BSP were seen totalling $109 billion.

The country’s GIR should be enough resources to answer more than two months’ worth of imports of goods and payments of services, far more than the global yardstick of only three months.

In calculations completed last December, the BSP projected the GIR this year totalling comparably higher at $112 billion until such events as the Russia-Ukraine conflict and soaring oil prices in global markets made imperative that a new calculation be made.

The GIR, an indicator of capacity to pay for foreign purchases or loans, totalled $110.1 billion in 2020, the BSP said.