THE country's gross international reserves (GIR) fell for a second straight month in February as the government paid off some of its foreign debts, the Bangko Sentral ng Pilipinas (BSP) reported late on Thursday.
The GIR level of $102.7 billion was $598.5 million lower than January's $103.3 billion, which was also down $483.3 million from the P103.75 billion posted at the end of last year.
GIR has consistently remained above $100 billion, however, since October 2023 and February's result, it was also higher than the year-earlier $98.22 billion.
"The month-on-month decrease in the GIR level reflected mainly the national government's (NG) payments of its foreign currency debt obligations," the central bank said in a statement.
The amount, it added, "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."
It was also equivalent to about "6.0 times the country's short-term external debt based on original maturity and 3.9 times based on residual maturity."
GIR levels are considered adequate if they can finance at least three months' worth of imports and payments of services and primary income.
Net international reserves, which comprise the difference between GIR and reserve liabilities, fell by $20 million to $102.66 billion as of end-February from $102.68 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, ING Manila Bank senior economist Nicholas Antonio Mapa said the country's reserves remained more than ample.
"This continues to dispel the outsized concerns of GIR dwindling and falling sharply," he added
Security Bank Corp. chief economist Robert Dan Roces also said that GIR remained healthy and provided for a comfortable buffer for imports and external obligations.
Future movements, he added, would depend on key factors. If the economy keeps growing, it can attract foreign investment and increase exports that will boost GIR.
"The government's debt management strategy and the BSP's foreign exchange interventions will play a role," he added.
The country's yearend reserves level of $103.75 billion in 2023 was an increase from $96.149 billion a year earlier.
The BSP expects the level to hit $102 billion at the end of this year.
GIR hit a record high of $110.12 billion in 2020.
Read The Rest at :
