Philippine GIR level sees slight increase to $94 billion in October

Philippine foreign reserves posted a slight increase in October, as the national government boosted its net foreign currency deposits with the Bangko Sentral ng Pilipinas (BSP).

Data released by the central bank showed that gross international reserves (GIR) — a measure of the country’s ability to settle import payments and service foreign debt — stood at $94.074 billion as of end-October.

Foreign exchange reserves indicate assets held by a central bank, with the BSP reserves consisting of foreign investments, gold, foreign exchange, reserve position in the International Monetary Fund (IMF), and special drawing rights.

The end-October level is higher than the $93.000 billion as of end-September but lower than the $107.888 billion in the same month in 2021.

The BSP attributed the month-on-month increase to the national government’s net foreign currency deposits, including proceeds from its bond issuance and the upward valuation adjustments in foreign currency-denominated reserves.

The Philippine peso hit an all-time low of P59:$1 during the month but has since appreciated and closed last Friday, November 4, at P58.55:$1.

“The latest GIR level represents a more than adequate external liquidity buffer equivalent to 7.5 months’ worth of imports of goods and payments of services and primary income,” the BSP said in an accompanying statement.

The central bank added it was also equivalent to 6.7 times the country’s short-term external debt based on original maturity, and 4.0 times based on residual maturity.

The latest data from the Bureau of the Treasury (BTr) showed that the government debt pile reached a fresh record high of P13.517 trillion as of end-September this year. — DVM, GMA Integrated News