PH’s foreign reserves down to $102.7B in February – BSP

THE country’s foreign currency reserves declined further as of the end of February 2024 amid the government’s settlement of i ts foreign currencydenominated debt.

Preliminary data released by the Bangko Sentral ng P i l i p i n a s s h o w e d t h a t t h e P h i l i p p i n e s ’ g r o s s international reserves (GIR) — a measure of the country’s ability to import payments and service foreign debt — as of last month amounted to $102.671 billion.

This is lower than the end- January 2024 level of $103.269 billion.

The BSP’s reserve assets consist of foreign investments, gold, foreign exchange, reserve position in the International Monetary Fund ( IMF), and special drawing rights.

“The month- on- month decrease in the GIR level reflected mainly the national government’s payments of its foreign currency debt obligations,” the central bank said.

Despite the decline, the end-February GIR level was a “more than adequate external liquidity buffer equivalent to 7.7 months’ worth of imports of goods and payments of services and primary income.”

The GIR is conventionally viewed to be adequate if it can finance at least three-months’ worth of the country’s imports of goods and payments of services and primary income — earnings of overseas Filipino workers as well as the profit of Philippine investments abroad.

The end-February foreign reserves level was also about 6.0 times the country’s shortterm external debt based on original maturity and 3.9 times based on residual maturity.

Short- term debt based on residual maturity refers to outstanding external debt with original maturity of one

year or less, plus principal payments on medium- and longterm loans of the public and private sectors falling due within the next 12 months.

Similarly, the net international reserves — the difference between the BSP’s reserves assets (GIR) and reserve liabilities (short-term debt and credit and loans from the International Monetary Fund) — decreased slightly to $102.66 billion from $102.68 billion monthon-month.