End-February 2019 GIR level rose to $82.9 billion

March 7, 2019

Preliminary data by the Bangko Sentral ng Pilipinas (BSP) Thursday showed gross international reserves (GIR) rose to $82.9 billion as of end-February from $82.49 billion as of end-January.

This rise in the GIR level was due mainly to inflows arising from the BSP’s foreign exchange operations, net foreign currency deposits by the national government , and the BSP’s income from its investments abroad.

But, 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 end-February level of  gross international reserves as an ample external liquidity buffer and is equivalent to 7.3 months’ worth of imports of goods and payments of services and primary income.

It is also equivalent to 6.3 times the country’s short-term external debt based on original maturity and 4.1 times based on residual maturity.

Net international reserves, which refer to the difference between the BSP’s gross international reserves and total short-term liabilities, increased by $0.41 billion to $82.89 billion as of end-February 2019 from the end-January level of $82.48 billion. DMS