MANILA — The Philippines’ foreign reserves remained at a healthy level despite a drop in March, the Bangko Sentral ng Pilipinas reported.

Preliminary data released Tuesday showed that the country’s gross international reserves (GIR) fell to USD107.5 billion in March from USD113.3 billion in February.

GIR consists of foreign-denominated securities, foreign exchange, and other assets, including gold, which act as a buffer against external economic shocks. These reserves help the country pay for imports, service foreign debt, and stabilize the peso.

Despite the decline, the BSP said the level still provides a strong external liquidity buffer, covering 7.1 months’ worth of imports of goods and payments for services and primary income. It also amounts to about 3.9 times the country’s short-term external debt based on residual maturity.

A GIR is considered adequate if it can finance at least three months of the country’s imports of goods and payments of services and primary income.