TheĀ country’sĀ gross international reserves (GIR) slightly declined in April as the government withdrew net foreign currency from its deposits, Bangko Sentral ng Pilipinas (BSP) said.
Data from the Central Bank showed that theĀ country’sĀ GIRĀ last AprilĀ reached $103.4 billion, lower than the $104.1 billion recorded in March.
“The month-on-month decrease in the GIR level reflected mainly the NationalĀ GovernmentāsĀ (NG) net foreign currency withdrawals from its deposits with the BSP to settle its foreign currency debt obligations and pay for its various expenditures,”Ā the central bank said in a statement.
However, the latest gross international reserve level still indicates more than sufficient external liquidity buffer or stock of liquid assets equivalent to 7.7Ā months’Ā worth of imports of goods and payment of services and primary income.
Similarly, the netĀ internationalĀ reserves, which refers to the difference between theĀ BSPāsĀ reserveĀ assets (GIR) andĀ reserveĀ liabilities (short-termĀ foreignĀ debt and credit and loans from theĀ InternationalĀ Monetary Fund (IMF)), decreased by $0.6 billion to US$103.4 billion as of end-April 2024 from the end-March 2024 level of $104.0 billion.
In an emailed commentary, Rizal Commercial Banking Corporation chief economist Michael Ricafort said theĀ latestĀ GIR amount is still above the minimum international threshold of three to fourĀ months’Ā worth of imports of goods amid the month-on-month decrease.
“(The GIR level) could still provide (a) greater buffer on the peso exchange rate versus any speculative attacks,”Ā Ricafort said.
“For the coming months, theĀ countryāsĀ GIR could stillĀ be supportedĀ by the continued growth in theĀ countryāsĀ structural inflows from OFWs (overseas Filipino workers) remittances, BPO (business process outsourcing) revenues, exports, relatively fast recovery in foreign tourism revenues, as well as continued foreign investment coming from among pre-pandemic highs,”Ā he added.Ā (TCSP)
