The country’s gross international reserves (GIR) dropped to USD108.5 billion as of end-November 2024, down from USD111.1 billion in October, according to the latest data from the Bangko Sentral ng Pilipinas (BSP). Despite the month-on-month decrease, the country’s GIR continues to serve as a robust external liquidity buffer, more than sufficient to cover the nation’s financial obligations.
The current GIR level is equivalent to 7.8 months’ worth of imports of goods and payments for services and primary income, well above the internationally recognized benchmark of only three months. Furthermore, it is approximately 4.3 times the country’s short-term external debt, based on residual maturity, highlighting the nation’s ability to meet its short-term external debt obligations.
The decline in GIR was primarily driven by several factors, including net foreign currency withdrawals by the national government to settle foreign currency debt obligations and cover other expenditures. Additionally, the BSP’s foreign exchange operations and a decrease in the international price of gold, which impacted the value of the BSP’s gold holdings, contributed to the month-on-month dip.
In tandem with the decline in GIR, the net international reserves (NIR), or the GIR minus the country’s short term obligations, also fell by USD2.6 billion, ending November at USD108.4 billion compared to October’s USD111.0 billion.
Despite these fluctuations, experts emphasize that the Philippines’ external liquidity remains resilient, providing a critical buffer against global financial uncertainties and ensuring the country can meet its foreign obligations without strain. The GIR’s current level underscores the stability and strength of the Philippine economy, even as it adjusts to dynamic global and domestic financial conditions.
