June Decline in PH Dollar Reserves Linked to BSP Peso Defense Efforts

In June, the Philippines’ gross international reserves (GIR) slightly declined to $104.70 billion from $105.02 billion in May, according to data from the Bangko Sentral ng Pilipinas (BSP). The net international reserves also fell by $290 million to $104.69 billion. The decrease was partly attributed to the BSP’s foreign exchange interventions to stabilize the peso, repayment of old external government debts, and lower global gold prices.
BSP Governor Eli Remolona Jr. emphasized the central bank’s efforts to prevent sharp depreciation of the peso, which faced volatility and speculation of a potential rate cut. Despite the dip, the GIR remains high, covering 7.7 months of import needs and significantly exceeding short-term external debt requirements. The BSP aims to maintain the GIR at a comfortable $104 billion by year-end.