BSP: Dollar Reserves Remain Strong Despite USD2-B Trade Deficit

The Bangko Sentral ng Pilipinas (BSP) reported that the country’s gross international reserves (GIR) stood at USD106.7 billion as of end-March 2025, slightly lower than the USD107.4 billion in February but still within a healthy range.

In a statement, the BSP said the current GIR level is enough to cover 7.4 months’ worth of imports and is 3.6 times bigger than the country’s short-term foreign debt. These figures are well above international standards, showing that the country still has strong external financial support.

However, the BSP also reported a USD2-billion deficit in the balance of payments (BOP) for March 2025. This means the country spent more dollars than it earned during the month, mainly due to the government’s foreign debt payments and other foreign exchange transactions.

Because of this, the total BOP from January to March 2025 recorded a USD3-billion deficit, reversing last year’s surplus of USD238 million in the same period.

The BSP said the impact of the deficit was eased by remittances from overseas Filipinos, foreign direct investments, and foreign loans obtained by the government.

Despite the trade gap, the BSP said the country’s dollar reserves remain strong and continue to provide a solid buffer for the economy. (ASC)