The country’s gross international reserves (GIR) rose to US$27.9 billion as of end-July 2007, or about US$1.5 billion higher than the end-June 2007 level of US$26.4 billion. The significant month-on-month increase in reserves was attributed mainly to the Bangko Sentral’s (BSP) foreign exchange operations on account of continued foreign exchange inflows, and receipts of investment income from abroad. These inflows were partly offset, however, by the debt service payments of the National Government on its foreign obligations. The end-July GIR level has exceeded the GIR forecast range of US$26.0-US$26.6 billion for end-2007.
In terms of reserve adequacy, the current GIR level can cover 5.1 months of imports of goods and payments of services and income. This level is also equivalent to 5.4 times the country’s short-term external debt based on original maturity and 3.0 times based on residual maturity.1
Net international reserves (NIR) level, including revaluation of reserve assets and reserve-related liabilities, likewise rose to US$27.9 billion from the end-June 2007 level of US$26.4 billion. NIR refers to the difference between the BSP’s GIR and total short-term liabilities.2
1 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.
2 Except for accrued interest payable of US$7 million, the BSP has repaid its foreign exchange short-term liabilities and credits to the International Monetary Fund (IMF).