THE country's gross international reserves (GIR) rebounded in May to their highest level so far for the year, the Bangko Sentral ng Pilipinas (BSP) reported late Friday.

At $104.48 billion, GIR has more than recovered from April's $1.42-billion dip to $102.628 billion, which the central bank last month said was due to national government withdrawals that were used to pay for debts and expenditures.

The May recovery, the BSP said in a statement, was mainly the result of foreign currency deposits by the government, including proceeds from a global bond offering and net income from the central bank's investments abroad.

While still far from the record $110.12 billion posted in 2020, last month's tally will have given the central bank more firepower to defend the peso, which weakened to the P58 to the dollar level late last month and continues to trade in ranges last seen nearly two years ago.

BSP Governor Eli Remolona Jr. last month said that the central bank had intervened to "control speculation," and noted that the country's reserves were more than what the International Monetary Fund views as adequate.

"The latest GIR level represents a more than adequate external liquidity buffer equivalent to 7.7 months' worth of imports of goods and payments of services and primary income," the BSP said on Friday.

It is also some 5.9 times the country's short-term external debt based on original maturity and 3.6 times based on residual maturity, it added.

The GIR level is considered adequate if "it can finance at least three months' worth of the country's imports of goods and payments of services and primary income," the BSP explained.

The level as of a particular period is also considered adequate "if it provides at least 100 percent cover for the payment of the country's foreign liabilities, public and private, falling due within the immediate twelve-month period."

Net international reserves, which comprise the difference between GIR and reserve liabilities, rose by $1.87 billion to $1024.46 billion as of end-May from the April level of $102.59 billion.

GIR consists of the BSP's foreign investments, gold, foreign exchange, a reserve position in the International Monetary Fund, and special drawing rights.

Sought for comment, Rizal Commercial Banking Corp. chief economist Michael Ricafort said the improvement was due to gains in foreign investments following a reduction in market volatility after Israel-Iran tensions in April.

"GIR posted net increase/improvement over the past year (since September 2022) after the continued increase of the country's structural US dollar/foreign currency inflows such as OFW (overseas Filipino worker) remittances," he added,

"For the coming months, the country's GIR could still be supported by the continued growth in the continued foreign investment inflows coming from among pre-pandemic highs and net foreign portfolio investments in recent months."