Manila: The country's gross international reserves (GIR) level at end-March 2025 remained healthy even as the balance of payment (BOP) last month recorded a USD2-billion deficit. The Bangko Sentral ng Pilipinas (BSP) reported Monday that the GIR level at end-March 2025 slightly declined to USD106.7 billion from USD107.4 billion in February.

According to Philippines News Agency, this latest GIR level provides a robust external liquidity buffer, equivalent to 7.4 months worth of imports of goods and payments of services and primary income, as stated by the BSP. Additionally, it covers approximately 3.6 times the country's short-term external debt based on residual maturity. The International Monetary Fund (IMF) recommends dollar reserves that cover at least three months of a country's imports, while the ASEAN+ Regional Standard suggests it should cover five to six months worth of imports.

The BSP noted that the Philippines recorded a BOP deficit of USD2 billion in March 2025, a reversal from the USD1.2-billion surplus in the same month last year. The government paid for its foreign debt obligations and engaged in some foreign exchange transactions, which reduced the country's dollar reserves.

This deficit brought the cumulative BOP level to a USD3-billion deficit, marking a reversal from the USD238-million surplus recorded from January to March 2024. Based on preliminary data, the year-to-date deficit mainly reflected the widening trade in goods deficit. The deficit was mitigated by remittances from Filipinos working abroad, investments from foreign businesses, and foreign loans taken by the national government.