The Philippines’ gross international reserves rose to a three-month high of $104.8 billion as of the end of June, according to data from the Bangko Sentral ng Pilipinas.
The level, the highest since $106.6 billion in March, provides a solid buffer for the country’s import needs, external debt servicing and protection against external shocks.
Reserves consist of foreign-currency assets, securities and gold. The June increase was driven mainly by net foreign-currency deposits from the national government with the central bank and the BSP’s investment income overseas, the central bank said.
Those gains were partially offset by negative valuation adjustments — primarily from lower gold prices and foreign-currency reserve assets — as well as government withdrawals for debt payments.
At the end of June, the reserves covered 6.8 months of imports of goods, services and primary income. They were equivalent to 3.7 times the country’s short-term external debt on a residual maturity basis.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said the GIR is likely to find further support in coming months from steady inflows including overseas Filipino workers’ remittances, business-process outsourcing revenue, exports and a recovery in tourism.
