Philippines' gross int'l reserves level settles at $103.53 billion in May

ABS-CBN News

Posted at Jun 08 2022 09:21 AM

MANILA - The Philippines' gross international reserves (GIR) level settled at $103.53 billion as of the end of May, the Bangko Sentral ng Pilipinas said Wednesday.

This is more than an adequate external liquidity buffer equivalent to 9.1 months' worth of imports of goods and payments of services and primary income, the BSP said in a statement. 

The total is also about 6.6 times the country's short-term external debt based on original maturity and 4.5 times based on residual maturity, it added.

However, the total is lower than the $106.76 billion GIR level in April, the BSP said.

"The month-on-month decrease in the GIR level reflected mainly the National Government’s (NG) foreign currency withdrawals from its deposits with the BSP to settle its foreign currency debt obligations and pay for its various expenditures," the central bank said.

The downward adjustment in the value of the BSP's gold holdings due to the decrease in the price of gold in the international market also contributed to the decline in the GIR, it added.

In addition, the net international reserves (NIR), which is the difference between the BSP's reserve assets (GIR) and reserve liabilities (short-term foreign debt and credit loans from the International Monetary Fund), declined to $103.51 billion as of the end of May, the BSP said.

Economic managers have said the country's hefty international reserves allowed the government to swiftly respond to the COVID-19 pandemic while maintaining its credit ratings despite heavy borrowings.

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