The country’s gross international reserves (GIR) hit the US$25.0 billion mark as of end-April 2007. The preliminary end-April 2007 level was US$0.3 billion higher than the end-March 2007 level of US$24.7 billion. The increase in reserves was due mainly to the BSP’s foreign exchange operations and income from investments abroad. Robust foreign exchange inflows continued during the month as investor sentiment remained strong given the country’s solid macroeconomic fundamentals. This enabled the BSP to build up its reserves even as it serviced its own foreign obligations and those of the National Government, including through prepayments of the BSP’s term loan facility (US$130 million originally maturing in October 2007 and April 2008) and the NG’s remaining Brady Bonds (US$126 million originally maturing in June 2018). In terms of reserve adequacy, the current GIR level could cover about 4.7 months of imports of goods and payments of services and income. This level is also equivalent to 5.0 times the country’s short-term external debt based on original maturity and 2.7 times based on residual maturity.1
Net international reserves (NIR), including revaluation of reserve assets and reserve-related liabilities, likewise rose to US$25.0 billion from the end-March 2007 level of US$24.7 billion. NIR refers to the difference between the BSP’s GIR and total short-term liabilities.
1Short-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.