The country’s gross international reserves (GIR) rose to US$36.7 billion as of end-June 2008, up by US$0.5 billion from the previous month’s level of US$36.2 billion. The increase in reserves was attributed mainly to the deposit by the Power Sector Assets and Liabilities Management Corporation (PSALM) of proceeds from the privatization program of the National Power Corporation (NPC), as well as the Bangko Sentral’s income from its investments abroad, credits from foreign financial counterparties, and revaluation gains. These receipts were partly offset, however, by outflows arising mainly from payments of maturing foreign currency-denominated obligations of the NG and the BSP, and prepayments of NPC’s various foreign loans.
The current GIR level can cover 6.0 months of imports of goods and payments of services and income. It was also equivalent to 5.1 times the country’s short-term external debt based on original maturity and 2.9 times based on residual maturity. 1
The level of net international reserves (NIR) as of end-June 2008, including revaluation of reserve assets and reserve-related liabilities, remained steady at US$36.2 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.