The gross international reserves (GIR) climbed to a new record high of $112.7 billion as of the end of February, strengthening the country’s external liquidity buffer and its ability to withstand global economic shocks, the Bangko Sentral ng Pilipinas (BSP) said.
In a recent advisory, the central bank said the latest level surpassed January’s near-record $112.6 billion, continuing the steady buildup of reserves seen in recent months amid strong inflows from the national government’s foreign borrowings and income from the central bank’s investments.
The current reserve stock is sufficient to cover 7.5 months’ worth of imports of goods and payments of services and primary income, well above the international benchmark of three months. It is also equivalent to about 4.2 times the country’s short-term external debt based on residual maturity, indicating strong external liquidity.
GIRs consist of foreign-denominated securities, foreign exchange holdings, gold and other reserve assets, including special drawing rights with the International Monetary Fund. These assets serve as a financial buffer that allows the country to pay for imports, service foreign debt obligations and stabilize the peso during periods of market volatility.