BSP: Gross international reserves climb in February

MANILA, Philippines — The Philippines’ gross international reserves grew in February, driven by the Bangko Sentral ng Pilipinas’ foreign exchange operations, net foreign currency deposits of the government and income from the central bank’s external investments.

In a statement, the BSP said the country’s GIR surged to $82.9 billion last month from $82.49 billion posted in January.

“However, the increase in reserves was partially tempered by payments made by the [national government] for servicing its foreign exchange obligations as well as revaluation losses from the BSP’s gold holdings, resulting from the decrease in the price of gold in the international market,” the central bank said.

International reserves are foreign assets of the BSP held mostly as investments in foreign-issued securities, monetary gold and foreign exchange.

Being the lender of last resort, the BSP holds international reserves for the foreign exchange requirements of the country in case the supply from domestic commercial banks falls short of the total demand.

As the term connotes, the international reserves serve as a stand-by fund to help the economy stay afloat during an exchange crisis or in time of national emergency.

According to the BSP, the GIR level in February serves as an “ample external liquidity buffer,” with an equivalent of 7.3 months import cover, as well as payments on services and primary income. — Ian Nicolas Cigaral