The country’s gross international reserves (GIR) as of end-June 2001 reached $14.58 billion, higher by $136 million, or 0.94 percent than the level posted a month ago. At the current level, reserves are adequate to cover 4.4 months of imports of goods and payment of services and income, and are more than twice the amount of the country’s short-term foreign liabilities.
The improvement in reserves during the first semester of 2001 was mainly on account of the receipt of the proceeds of the national government’s (NG) 3-year private placement floating rate notes amounting to $199 million as well as investment income. Mitigating the impact of these inflows were the foreign exchange requirements of the NG and the BSP to service maturing external obligations.
As a result of these developments, the BSP’s net international reserves (BSP-NIR) rose to $10.81 billion as of end-June 2001 from $10.61 billion posted the previous month.