Philippines’ Gross International Reserves Rise to $105.65 Billion in July

MANILA — The Philippines’ gross international reserves (GIR) increased to USD 105.65 billion at the end of July, up from USD 105.19 billion at the end of June, according to preliminary data from the Bangko Sentral ng Pilipinas (BSP).

According to Philippines News Agency, the rise in the GIR was primarily driven by upward valuation adjustments in the central bank’s gold holdings, which responded to an increase in international gold prices, net income from the BSP’s investments abroad, and net foreign currency deposits made by the national government. “The latest GIR level represents a more than adequate external liquidity buffer equivalent to 7.8 months’ worth of imports of goods and payments of services and primary income,” the BSP stated.

Additionally, the net international reserves — the difference between the BSP’s reserve assets (GIR) and reserve liabilities (including short-term foreign debt and credit and loans from the International Monetary Fund) — also showed an increase, reaching USD 105.62 billion at the end of July 2024, from USD 105.16 billion at the end of June 2024. The central bank highlighted that the GIR provides significant security against external shocks, as it is about 6.1 times the country’s short-term external debt based on original maturity and 3.8 times based on residual maturity.