Philippines' gross reserves slip to $106 billion in June: BSP

ABS-CBN News

Posted at Jul 13 2021 04:14 PM

Philippines' gross reserves slip to $106 billion in June: BSP 1
Four thousand U.S. dollars are counted out by a banker counting currency at a bank in Westminster, Colorado November 3, 2009. Rick Wilking, Reuters/File Photo

MANILAS - The Philippines' gross international reserves (GIR) level slightly declined settling at $106.08 billion in June 2021, the Bangko Sentral ng Pilipinas said Tuesday. 

In May, GIR was at $107.25 billion, the BSP said in a statement 

The June GIR level is "more than adequate" external liquidity buffer equivalent to 12.1 months' worth of imports of goods and payments of services and primary income, the central bank said.

The total is also 7.8 times the country's short-term external debt based on original maturity and 5.2 times based on residual maturity, it said.

On Monday, Fitch Ratings cited the Philippines' external finances as a "credit strength" noting that foreign-currency reserves are high and gross external debt levels remain manageable.

The month-on-month decrease was attributed to the downward adjustment in value of the BSP's gold holdings, foreign currency withdrawals to pay foreign debt obligations and other expenditures, it said.

These were partly offset by inflows from BSP's income from investments abroad, it said.

BSP Governor Benjamin Diokno said he is not worried of any US Federal Reserve interest rate cut due to the Philippines' "hefty" international reserve.

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