MANILA — The Bangko Sentral ng Pilipinas (BSP) reported that the country’s balance of payments (BOP) position registered a deficit in March, although gross international reserves (GIR) remain at a level considered adequate to support external stability.

In a report released Monday, the BSP said the Philippines posted a BOP deficit of USD 2.6 billion for the month, bringing the year-to-date shortfall to USD 5.3 billion.

The BOP reflects a country’s economic transactions with the rest of the world over a given period and may result in a surplus, deficit, or balanced position.

The BSP noted that the BOP outcome coincided with a decline in the country’s GIR, which fell to USD 106.6 billion in March from USD 113.3 billion in February.

Despite the drop, the central bank said reserves remain sufficient as an external liquidity buffer, equivalent to about seven months’ worth of imports of goods and payments of services and primary income.

It also noted that the GIR level covers around 3.9 times the country’s short-term external debt based on residual maturity.

Gross international reserves are composed of foreign-denominated securities, foreign exchange, and other assets including gold. These assets help ensure adequate dollar liquidity for import requirements, external debt payments, and protection against currency volatility and external shocks.

The BSP said reserve adequacy is generally measured at a minimum of three months’ worth of import coverage, a threshold the Philippines continues to exceed.