The country’s foreign reserves remain adequate despite the recorded deficit in the balance of payments (BOP), the Bangko Sentral ng Pilipinas (BSP) said Tuesday.

According to the central bank, the balance of payments (BOP) registered a deficit of USD2.1 billion in April, down from the USD2.6 billion recorded in March.

This brought the cumulative BOP position to USD7.4 billion for January to April this year.

The overall BOP position denotes the transactions of the country with the rest of the world.

Meanwhile, the country’s gross international reserves (GIR) settled at USD104.3 billion.

“This level provides a robust external liquidity buffer equivalent to 6.9 months’ worth of imports of goods and payments of services and primary income,” the BSP said in a statement.

The level also covers about 3.8 times the country’s short-term external debt based on residual maturity, it added.

GIR are made up of foreign-denominated securities, foreign exchange and other assets including gold, which help ensure sufficient dollar liquidity to meet the country’s import needs and foreign debt obligations, address currency volatility and provide a buffer against external economic shocks.

GIR is viewed to be adequate if it can finance at least three months’ worth of the country’s imports of goods and payments of services and primary income. (PNA)