Dollar reserves rose for third month in July, boosted by gold price hike, gov't deposits

The country's international reserves held by the central bank inched higher for the third consecutive month in July, thanks to higher gold prices and an increase in the government’s deposits, the Bangko Sentral ng Pilipinas (BSP) said on Wednesday.

In a statement, the BSP said that its gross international reserves increased to $105.65 billion by the end of July 2024, up from $105.19 billion in June.

These reserves have risen incrementally each month since dipping to $102 billion last April, data showed.

This latest $460-million increase is attributed primarily to higher valuation of the BSP’s gold holdings, following a rise in global gold prices.

Additionally, the increase was bolstered by the national government's net foreign currency deposits with the central bank.

The improved dollar reserve level provides a significant liquidity buffer, covering 7.8 months' worth of imports and payments for services and primary income.

It also stands at 6.1 times the country’s short-term external debt based on original maturity and 3.8 times based on residual maturity, the central bank said.