The country’s gross international reserves or GIR level declined to $103.4 billion as of the end of January this year from $103.8 billion as of the end of December last year.

The Bangko Sentral ng Pilipinas or BSP said this level remained more than adequate, representing payments for up to 7.7 months’ worth of imports of goods and services and primary income.

GIR includes foreign investments, foreign exchange income, gold, the country’s reserve position in the International Monetary Fund or IMF, and its special drawing rights.

The BSP said the GIR’s decline stemmed from higher payments to foreign currency debts by the national government and lower gold holdings by the central bank brought about by cheaper prices of this asset worldwide.

Foreign investments decreased to $87.4 billion as of the end of January from $87.9 billion as of the end of December.

Similarly, gold holdings were down to $10.3 billion from $10.6 billion during the period.

These losses were offset by higher foreign exchange income of $1.2 billion from $770 million.

Net reserves down

Consequently, the net international reserves, which refer to the difference between the GIR and short-term foreign debt and credit and loans from the IMF, decreased by $0.9 billion to $102.8 billion.

The national government’s outstanding debt as of end-2023 rose by 8.92 percent to P14.62 trillion compared to the year-ago level, the Bureau of the Treasury reported.

External debt rose by 9.21 percent to P4.6 trillion.

Credit analyst Fitch Ratings said foreign direct investments this year will remain “stable” as individuals and firms in many countries are tightening fists due to high interest and inflation rates.

The Department of Finance, however, said the Philippine government is further liberalizing investment and easing business processes to attract more foreign firms into the country.

The DoF last month discussed with the United States Department of State undersecretary for economic growth, energy and environment Jose Fernandez potential projects involving minerals and semiconductors.