Gross international reserves (GIR) remained at $103.4 billion as of end-July. These provide sufficient foreign currency to meet the country’s import needs, service its external debt obligations, and serve as a buffer against external economic shocks.

The decrease in reserves was mainly driven by the following: Bangko Sentral ng Pilipinas’ (BSP) net foreign exchange operations, national government’s (NG) drawdowns on its foreign currency deposits with the BSP for external debt service, and NG’s net foreign currency withdrawals from its deposits with the BSP.

These were partly offset by the following: upward valuation adjustments in the BSP’s gold holdings due to the increase in the price of gold in the international market, and the BSP’s net income from its investments abroad.

The end-July GIR level can cover up to 6.7 months' worth of imports of goods and payments of services and primary income. It can likewise cover about 3.6 times the country's short-term external debt based on residual maturity. Bangko Sentral ng Pilipinas