PH dollar reserves hit record-high $111.98B in September

Philippine dollar reserves hit a record-high in September to reflect the net foreign currency deposits and the higher valuation of the Bangko Sentral ng Pilipinas’ (BSP) gold holdings, along with the central bank’s net income from overseas investments.

Preliminary data released by the BSP on Monday showed that the GIR — a measure of the ability to settle import payments and service foreign debt — stood at $111.981 billion as of end-September.

This compares with the $107.857 billion as of end-August, and $98.116 billion in the comparable period of 2023.

The BSP attributed the month-on-month increase to the net foreign currency deposits, which includes  the $2.5 billion recently raised from the sale of the triple-tranche US dollar-denominated global bonds.

It also cited upward valuation adjustments in its gold holdings due to the increase in gold prices in the international market, and the net income from investments abroad.

“The latest GIR level represents a more than adequate external liquidity buffer equivalent to 8.1 months’ worth of imports of goods and payments of services and primary income,” the BSP said in an accompanying statement.

This is also 6.3 times the country’s short-term external debt based on original maturity and 4.4 times based on residual maturity.

Data from the Bureau of the Treasury (BTr) showed that the national government’s outstanding debt stood at P15.55 trillion as of end-August 2024, down by 0.9% from the P15.68 trillion as of end-July, primarily due to the revaluation of the peso appreciation.

Meanwhile, net international reserves or the difference between the reserve assets and reserve liabilities, increased by $4.2 billion to $112.0 billion. — RSJ, GMA Integrated News