1 week Ago By N/A (Lee C. Chipongian)
The country’s US dollar stock or gross international reserves (GIR) as of end-August reached $106.924 billion, almost unchanged from end-July’s $106.737 billion, based on Bangko Sentral ng Pilipinas (BSP) data.
The latest GIR is higher compared to same period in 2023 of $99.567 billion. The BSP in a statement said the GIR level continues to be “more than adequate external liquidity buffer” which is equivalent to 7.
9 months’ worth of imports of goods and payments of services and primary income. It is also 6.1 times the country’s short-term external debt based on original maturity and 3.
7 times based on residual maturity. “The month-on-month increase in the GIR level reflected mainly the net income from the (BSP’s) investments abroad,” said the BSP. A country’s GIR is sufficient if it can finance at least three-months’ worth of the country’s imports of goods and payments of services and primary income.
It will also be considered adequate if it will have at least 100 percent cover for the payment of foreign liabilities for both the public and private sector. As of end-August, the net international reserves (NIR) slightly rose to $106.915 billion from $106.
694 billion in end-July. The NIR is is difference between the BSP’s reserve assets which is the GIR and reserve liabilities or the short-term foreign debt and credit and loans from the International Monetary Fund (IMF). The BSP’s reserve assets are composed of gold, foreign investments, foreign exchange, reserve position in the IMF, and special drawing rights or SDRs in the IMF.
As of end-August, the BSP’s gold reserves amounted to $10.221 billion, down from $10.231 billion same time last year and from $10.
312 billion end-July. BSP’s foreign investments mainly in securities and bonds totaled $91.409 billion, up from $84.
133 billion in 2023 and from the previous month’s $91.109 billion. The central bank has foreign exchange of $773.
4 million which was lower than end-July’s $809 million but higher than same period last year of $644.6 million. The BSP’s reserve position in the IMF totaled $725 million as of end-August while SDR holdings stood at $3.
795 billion. The amount changes depending on the SDR conversion rate. In 2023, the country’s GIR totaled $103.
753 billion, up from $96.149 billion in 2022. So far, the highest GIR level was recorded at $108.
794 billion in 2021. For this year, the BSP has a GIR forecast of $104 billion and about $105 billion next year..
