The country’s gross international reserves or GIR was recorded at $107.16 billion as of end-September 2021, latest data from the Bangko Sentral ng Pilipinas (BSP) showed.
Still, the latest data proved to be higher than the $100.44 billion in September 2020 but lower than the listed $107.96 billion in August 2021.
The BSP attributed the month-on-month decline in the GIR to the settlement of the national government’s foreign obligations as well as the downward adjustment in the value of the BSP’s gold holdings.
“Similarly, the net international reserves, which refers to the difference between the BSP’s GIR and total short-term liabilities, decreased by $0.81 billion to $107.15 billion as of end-September 2021 from the end-August 2021 level of $107.96 billion,” it explained.
According to the central bank, the latest GIR level remains more than ample to shield the country against external shocks, as such was equivalent to 10.8 months’ worth of imports of goods and payments of services and primary income.
Enough for 3-month trade
Likewise, the current dollar reserves represent about 7.6 times of the country’s short-term external debt based on original maturity and 5.2 times based on residual maturity.
A country’s GIR is considered to be adequate if it can finance at least three-months’ worth of its imports of goods and payments of services and primary income, the BSP said.
The central bank determines the GIR’s adequacy if it can cover the country’s foreign obligations in full — both for public and private, falling due within the immediate 12-month period.
The BSP recently revised its GIR projection for the year from $115 billion to a slightly lower $114 billion.