The country’s gross international reserves (GIR) rose to US$26.4 billion as of end-June 2007, or about US$800 million higher than the end-May 2007 level of US$25.6 billion. This end-June 2007 GIR level is closer to the high end of the GIR forecast range of US$26.0-US$26.6 billion for end-2007. The continued accumulation of reserves was attributed mainly to the Bangko Sentral’s (BSP) foreign exchange operations, due in turn to strong inflows of dollars, and receipts from investment income abroad. These inflows were partly offset, however, by payments of maturing foreign exchange obligations of the BSP and the National Government.
In terms of reserve adequacy, the current GIR level can cover about 4.9 months of imports of goods and payments of services and income. This level is also equivalent to 5.3 times the country’s short-term external debt based on original maturity and 2.8 times based on residual maturity.
Net international reserves (NIR), including revaluation of reserve assets and reserve-related liabilities, likewise rose to US$26.4 billion from the end-May 2007 level of US$25.6 billion. NIR refers to the difference between the BSP’s GIR and total short-term liabilities.