The country’s gross international reserves (GIR) reached an all-time high of US$30.3 billion as of end-August 2007. This level is US$2.3 billion higher than the end-July 2007 level of US$28.0 billion. Sustained foreign exchange inflows enabled the Bangko Sentral (BSP) to build up its reserves level while at the same time service its debt and those of the National Government. Receipts of income from investments abroad also contributed to the increase in the GIR level.
In terms of reserve adequacy, the current GIR level can cover 5.6 months of imports of goods and payments of services and income. This level is also equivalent to 5.9 times the country’s short-term external debt based on original maturity and 3.2 times based on residual maturity. 1
Net international reserves (NIR) level, including revaluation of reserve assets and reserve-related liabilities, stood at US$30.3 billion from the end-July 2007 level of US$28.0 billion. NIR refers to the difference between the BSP’s GIR and total short-term liabilities.
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.