End-October GIR level settles at $74.77 billion

November 7, 2018

Preliminary data showed that gross international reserves (GIR) level stood at $74.77 billion as of end-October, Bangko Sentral ng Pilipinas (BSP) Governor Nestor Espenilla, Jr. announced Wednesday.

This was slightly lower than the $74.94 billion level in September due mainly to outflows arising from the payments made by the National Government for its foreign exchange obligations, National Government net foreign currency withdrawals, and foreign exchange operations of the BSP. This was the lowest since $71.88 billion in July 2011.

The decline in the GIR was partially tempered by the revaluation adjustments on the BSP's gold holdings resulting from the increase in the price of gold in the international market and BSP's income from its investments abroad.

The end-October evel of GIR continues to serve as an ample external liquidity buffer and is equivalent to 6.8 months' worth of imports of goods and payments of services and primary income. It is also equivalent to 5.7 times the country's short-term external debt based on original maturity and 3.9 times based on residual maturity.

Net international reserves (NIR), which refer to the difference between the BSP's GIR and total short-term liabilities, likewise decreased by US$0.16 billion to US$74.76 billion as of end-October 2018 from the end-September 2018 level of US$74.92 billion. DMS