The Philippines’ gross foreign reserves decline to $103.4 billion at end-July, according to the central bank’s preliminary data. This is down from $104.7 billion at the end of June, a fall of about 1.2 percent. Both outlets report that the level is near a two-year low, reflecting tighter reserve conditions compared with recent months.
The central bank says the reserves serve as an external liquidity buffer equivalent to 6.7 months of imports of goods and payments of services and primary income. The decline is also linked to government actions and central bank measures. One reported factor is that the government pays down offshore debt, which reduces reserve levels. Another is central bank intervention in currency markets intended to limit swings in peso trading.
Overall, the sources agree on the end-July reserve figure of $103.4 billion, the month-on-month decline from $104.7 billion, and the central bank’s assessment of reserves’ ability to cover several months of external payments.
