The country’s gross international reserves (GIR) increased to US$108.8 billion in September, up from US$107.1 billion at the end of August this year. This growth was attributed to higher global gold prices, earnings from Bangko Sentral ng Pilipinas (BSP) investments, and foreign currency deposits made by the national government.
GIR, which consists of foreign-denominated securities, foreign exchange, and gold, are crucial for financing imports, servicing foreign debt, stabilizing the currency, and cushioning against external economic disruptions. The latest reserves provide an external liquidity buffer equivalent to 7.3 months of imports and payments for goods, services, and primary income.
Additionally, net international reserves also saw a US$1.7 billion increase, reflecting the same trend. The current GIR level covers 3.6 times the country’s short-term external debt, further strengthening the Philippines’ financial position.
This robust reserve accumulation highlights the nation’s capacity to meet foreign liabilities and secure economic stability in the face of potential global economic shocks.
