The Bangko Sentral ng Pilipinas (BSP) reported a slight dip in the country’s gross international reserves (GIR) to $112.43 billion at the end of October, down from $112.71 billion in September.
The month-over-month decrease was primarily due to the government’s foreign currency withdrawals to fulfill debt obligations and other expenses.
Despite the decline, the BSP assures that the current GIR level remains robust, providing an 8.1-month cushion for imports and other external payments. Additionally, it covers 4.5 times the country’s short-term external debt.
Conventionally, a GIR level sufficient to finance three months’ worth of imports is considered adequate.
