MANILA — The Philippines’ gross international reserves have reached a record-breaking $112 billion by the end of September, the central bank announced on Monday, based on preliminary data.
This is a big jump from the $107.9 billion recorded in the previous month. These reserves are very important because they act as a financial safety net for the country. In simple terms, the reserves are like savings that the Philippines can use in case of an emergency, such as paying for imported goods and services, or other important financial obligations.
According to the central bank, the reserves are enough to cover 8.1 months’ worth of imports. This means that if the country had no other way to pay for goods and services from other countries, it could keep buying these things for 8.1 months using the reserves. This shows that the Philippines has strong financial security at the moment.
