End-June GIR hits $105.3B; growth flat T
HE annual growth of the country’s Gross International Reserves (GIR) was flat at the end of June 2025, according to the latest data released by the Bangko Sentral ng Pilipinas (BSP). The BSP said the country’s dollar reserves reached $105.3 billion at end-June 2025, a 0.13-percent growth from the $105.2 billion recorded in the same period last year. Jonathan Ravelas, senior adviser at professional services firm Reyes Tacandong & Co., told this newspaper that while this growth
WORLD » A7
TRUMP REVERSES COURSE: US TO SEND MORE DEFENSIVE WEAPONS TO UKRAINE
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indicates stability, it also “signals limited momentum.” “Key concerns [on the GIR] include global interest rate shifts, export performance, and remittance flows. A stronger peso or lower import demand could boost reserves, while geopolitical tensions or rising debt repayments may pressure them,” Ravelas said on Tuesday. Given these concerns and the adequate coverage that dollar reserves have on imports and short-term debt, Ravelas said, his outlook on the country’s GIR is cautiously optimistic.
“If the BSP maintains prudent monetary policy and the government sustains foreign currency inflows, GIR could edge higher. But vigilance is needed amid global uncertainty,” Ravelas said. The BSP said the latest GIR level provides an external liquidity buffer, equivalent to 7.2 months’ worth of imports of goods and payments of services and primary income. The central bank noted that 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. The latest GIR level, the BSP said, ensures availability of foreign exchange to meet balance of payments financing needs, such as for payment of imports and debt service, in extreme conditions when there are no export earnings or foreign loans. Moreover, the data showed the GIR can cover about 3.3 times the country’s short-term external debt based on residual maturity. The BSP said short-term debt based on residual maturity refers to outstanding external debt See “End-June,” A2
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Wednesday, July 9, 2025 Vol. 20 No. 269
P25.00 nationwide | 2 sections 22 pages | 7 DAYS A WEEK
Palace: PHL, US talks on tariffs ‘in a good place’ By Samuel P. Medenilla and Andrea E. San Juan
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S United States President Donald Trump starts declaring higher reciprocal tariffs for some countries like Japan and South Korea, Manila continues its trade talks with Washington in its bid to lower American custom duties on the Philippine goods, according to Malacañang. In a press briefing on Tuesday, Palace Press Officer Claire Castro said Special Assistant to the President for Investment and Economic Affairs Frederick D. Go have yet to receive any official communication from his counterparts in the US for any changes in its current 10-percent tariff on Philippine goods entering its borders.
IN TARIFFS WE TRUST? As fireworks lit up the East River in a dazzling reenactment of America’s Declaration of Independence on July 4, with chrysanthemums and peonies bursting like fiery signatures in the sky, a more ironic declaration brews
beneath the glow—by July 9, the same nation celebrating liberty will impose new tariffs, effectively shackling parts of the global economy in protectionist chains. What blazes as freedom today may land as fiscal fireworks elsewhere tomorrow. Story in A8 World, “Trump sends tariff letters to 14 nations, leaves door open for last-minute deals.”. TROI SANTOS
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By Cai U. Ordinario
ESPITE the recent slowdown in the country’s inflation rate, economists believe more Filipinos will remain or become underemployed in the coming months, according to economists. WORKING, BUT STILL WANTING: UNDEREMPLOYMENT IN FOCUS Total: 6.6 million
Visibly underemployed are Filipinos working less than 40 hours a week. These workers may or may not have contracts or are employed only on a part-time basis.
Mean Hours Worked Per Week
Employment In Select Sectors May 2024 vs May 2025
❝Poverty is the main cause of underemployment. Workers are looking for more work because their jobs are not enough to satisfy their basic needs.❞ — Leonardo M. Lanzona Jr., Ateneo ❝Underemployment is rooted in inadequate wages and earnings. Workers, even those working full time, seek additional work if earnings in current jobs are inadequate.❞— Dante B. Canlas, UP ❝Rising prices, limited access to full-time or better-paying jobs, and the mismatch between skills and available opportunities continue to push more Filipinos to seek additional work hours or income sources.❞— John Paolo Rivera, PIDS
BM Graphics: Ed Davad | Source: PSA
Underemployment Breakdown (May 2025)
On Tuesday, the Philippine Statistics Authority (PSA) reported that while there was a decrease in the number of unemployed Filipinos, some 1.79 million joined the ranks of the underemployed. (See: ht t p s:// b u s i ne s s m i r ror.com . ph /2025/07/08/more-pinoyslooking-for-new-side-jobs/). Specifically, the data showed 951,000 more workers became visibly underemployed in May. This pegged the number of these Filipinos to 3.91 million, more than half of the total 6.6 million underemployed in the country. “This [underemployment] will continue despite the decrease in inflation. Lower inflation is tied to a general slowdown in the economy,” Ateneo de Manila University economist Leonardo M. Lanzona Jr. told BusinessMirror. “Commodity prices are down not because of government reforms but because of the sluggish economy. The claim that government is doing its part in reducing inflation is contradicted by the increase in underemployment,” he added. Another economist from Ateneo, See “Underemployment,” A11
GENERATION, TRANSMISSION CHARGES SEEN RISING IN JULY By Lenie Lectura
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@llectura
HE Manila Electric Company (Meralco) said Tuesday that generation and transmission charges are likely to go up which may result in higher overall electricity rates for this month. “While we have yet to receive all the final billings from our suppliers, indication point to a possibility of an increase in the generation charge this month,” said Meralco spokesperson Joe Zaldarriaga. The generation charge is the largest component of an electric bill. “This may be mainly due to the peso depreciation which will af-
fect dollar-denominated costs of our suppliers. We hope that the expected increase will be mitigated by lower WESM [Wholesale Electricity Spot Market] charges,” added Zaldarriaga. Moreover, transmission charge could also increase due to the pressure in reserve market prices for the June supply month compared with the previous month. Meralco will soon announce the final rates for July. Last month, power rates went down by P0.1076 per kilowatt hour (kWh), which brought the overall rate for a typical household at P12.1552 per kWh. Pass-through charges for generation and transmission are paid by Meralco to the power suppliers See “Generation,” A2
“We are looking at [the] supply chain, this is key as eventually [the] country of origin for this supply will be affected.”–Seipi Chairman Norberto Viera
She declined to disclose any details about the negotiations due to the country’s existing confidentiality agreement with the US, but described the talks as currently in a “good place.” “The Philippines and the US, have reached an agreement that there will be cooperation for the economic development of the Philippines,” she said. On Monday, the White House announced the extension for countries to negotiate deals to reduce or remove their tariff and non-tariff barriers for US goods until 1 August 2025. The US also announced new tariff rates for the following countries: 25-percent tariffs for Japan and South Korea; 40 percent for Myanmar and Laos; 36 percent for Thailand; and 32 percent for Indonesia. See “Palace,” A2
PESO EXCHANGE RATES n US 56.5920 n JAPAN 0.3876 n UK 77.0047 n HK 7.2102 n CHINA 7.8874 n SINGAPORE 44.2436 n AUSTRALIA 36.7339 n EU 66.2692 n KOREA 0.0411 n SAUDI ARABIA 15.0900 Source: BSP (July 8, 2025)