The country’s gross international reserves (GIR) remain adequate despite a recent dip, according to the Bangko Sentral ng Pilipinas (BSP).

Preliminary data released Wednesday showed that the GIR contracted to USD100 billion at the end of September, down from the USD104.8 billion recorded in August.

The BSP attributed this reduction to its net foreign exchange operations and downward valuation adjustments, primarily driven by changes in the prices of the BSP’s gold holdings and foreign currency–denominated reserve assets.

The national government’s (NG) drawdowns on its foreign currency deposits with the BSP for external debt service and its net foreign currency withdrawals from its deposits with the BSP also contributed to the decrease in GIR during the month.

Despite the decline, the BSP said the GIR “provides sufficient foreign currency to meet the country’s import needs, service its external debt obligations, and serve as a buffer against external economic shocks.”

It is equivalent to 6.3 months’ worth of imports of goods and payments for services and primary income.

The latest GIR level can also cover about 3.2 times the country’s short-term external debt based on residual maturity.

GIR consists of eligible foreign assets, including securities, currency and deposits, reserve position in the fund, gold, special drawing rights and other reserve assets, held by the central bank. (PNA)