The country’s gross international reserves (GIR) as of end-October 2000 stood at $14.4 billion, down by 3.1 percent from the end-September level of $14.9 billion and 4.4 percent lower than the end-December 1999 level of $15.1 billion. Reserves, though slightly lower than the previous period, was still at a comfortable level equivalent to 4.4 months of imports of goods and services.
The decline in reserves was due primarily to the BSP’s foreign exchange sales to the National Government (NG) to service its debt service requirements and to the BSP’s foreign exchange requirements. Mitigating the impact of these outflows was the deposit by NG of proceeds from its syndicated loan.
As a result of these developments, the BSP’s net international reserves (BSP-NIR), defined as the difference between the BSP’s total foreign assets and its short-term foreign liabilities (including use of fund credits), amounted to $10.9 billion as of end-October.