Sep 052014

MANILA, Philippines – The country’s gross international reserves in August managed to rise slightly from a month ago due to earnings from the Bangko Sentral ng PIlipinas’ foreign exchange operations and investments abroad.

In a report, the BSP said the GIR stood at $80.785 billion in August, up slightly from $80.644 billion in July.

 “The increase in reserves was due mainly to the foreign exchange operations of the BSP, net foreign currency deposits by the Treasurer of the Philippines, and income from the BSP’s investments abroad,” the central bank said.

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

The GIR reflects a country’s ability to pay for its foreign debt and its imports of goods and services.

According to the BSP, the end-August GIR can cover 11 months’ of imports of goods and payments of services and income.

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At the same time, it is also equivalent to 7.9 times the country’s short-term external debt based on original maturity and 5.7 times based on residual maturity.

Meanwhile, net international reserves or GIR minus short-term debts rose to $80.779 billion in August from $80.638 billion in July.

Last year, foreign exchange reserves amounted to $83.19 billion, slightly lower than the $83.83 billion recorded in end-2012.

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