The country’s gross international reserves (GIR) inched up further to US$21.56 billion as of end-September 2006 from US$21.54 billion the previous month. The preliminary end-September GIR level was adequate to cover about 4.3 months of imports of goods and payments of services and income. This level was also equivalent to 3.9 times the country’s short-term debt based on original maturity and 1.9 times based on residual maturity. Short-term debt based on residual maturity refers to outstanding external debt with original maturity of one year or less, plus principal payments on medium- and long-term loans of the public and private sectors falling due within the next 12 months.
The slight increase in the end-September 2006 GIR level was attributed mainly to inflows from the BSP’s foreign exchange operations and income from investments abroad, which helped mitigate the foreign exchange requirements for payments of the National Government (NG) and BSP’s maturing obligations.
Net international reserves (NIR), including revaluation of reserve assets and reserve-related liabilities, reached US$21.31 billion, or US$47 million higher than the end-August 2006 level of US$21.26 billion. NIR refers to the difference between the BSP’s GIR and the combined total of short-term liabilities and use of Fund credits.