Forex reserves hit $83.2 B

MANILA, Philippines - The country’s gross international reserves (GIR) continued to rise in August, the Bangko Sentral ng Pilipinas (BSP) reported yesterday.

GIR last month amounted to $83.2 billion, slightly higher than the $83.172 billion recorded in July.

“The increase in reserves was due mainly to inflows from revaluation gains on the BSP’s gold holdings, foreign exchange operations of the BSP, and net foreign currency deposits by the Treasurer of the Philippines,” the BSP said.

“These inflows were partially offset by the payments for maturing foreign exchange obligations of the National Government,” it added.

The BSP stressed the August GIR level was well enough to cover one-year worth of imports of goods and payments of services and income.

At the same time, the latest figure was equivalent to eight times the country’s short-term external debt based on original maturity and 5.5 times based on residual maturity.

Net international reserves, which is GIR minus the short-term debts, went up to $83.195 billion as of end-August from $83.167 billion a month ago.

International reserves peaked at an all-time high of $85.273 billion in January.

The BSP expects GIR to reach $87 billion by year-end, four percent above the $83.831 billion seen in end-2012.

BSP deputy governor Diwa C. Guinigundo last week said the Philippines is not expected to tap any regional financial arrangements given the level of reserves it has.

The comment was made amid bouts of volatility experienced by Asian markets as investors second guess the timing of the US Federal Reserve’s tapering and as geopolitical risks continue, especially in Syria.