The country’s gross international reserves (GIR) decreased to $104.7 billion as of end-June from $105.02 billion as of end-May, preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed.

The BSP attributed the decline in GIR to the national government’s higher payments for foreign currency debt and the central bank’s lower value of gold holdings due to cheaper prices of the asset in the global market.

However, the BSP said the GIR level was more than enough to cover 7.7 months’ worth of imports of goods and payments of services.

Bonds due

Michael Ricafort, chief economist of Rizal Commercial Banking Corp., said he expected the lower GIR level as the national government is obliged to start paying investors of the $2-billion global bonds it issued early in May.

The GIR data also came after the peso depreciated against the US dollar toward the end of June, hovering 58 levels.

Jonathan Ravelas, senior adviser at Reyes Tacandong & Co., said the national government’s debt might remain relatively high as it realizes its massive infrastructure plan worth over P9 trillion.

He added investors in debt instruments will likely maximize gains before US interest rates possibly decline in September or December.

“With the government’s push for infrastructure spending and fiscal consolidation, we could still see some rise as higher rates for longer will push up debt costs,” he said.

The Bureau of the Treasury reported the national government’s external debt as of May already reached P4.9 trillion or 4.2 percent higher than the level recorded in April.

‘With the government’s push for infrastructure spending and fiscal consolidation, we could still see some rise as higher rates for longer will push up debt costs.’

Foreign loans accounted for 31.96 percent of the total borrowings of the national government during that period.