THE country's gross international reserves (GIR) rose to $104 billion in March, the Bangko Sentral ng Pilipinas (BSP) reported during the weekend, up from February's $102 billion and also higher than the year-earlier $101.5 billion.

The month-on-month rise was said to have been primarily driven by government foreign currency deposits with the central bank, higher gold prices that raised the value of the central bank's gold holdings, and net income from the BSP's foreign investments.

The amount "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 central bank said in a statement.

It is also equivalent to about "6.1 times the country's short-term external debt based on original maturity and 3.7 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, increased to $103.8 billion as of end-March from $102.0 billion in February.

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 increase could be attributed to higher foreign investments.

He added that an expected government bond offering as early as the second quarter of 2024, plus corporate foreign borrowings, would further boost the GIR level as well as the country's balance of payments.

"For the coming months, the country's GIR could still be supported by the continued growth in the country's structural inflows from OFW (overseas Filipino worker) remittances, BPO (business process outsourcing) revenues, and exports," he added.

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