The country’s gross international reserves (GIR) climbed to US$36.9 billion as of end-July 2008, US$0.2 billion higher than the previous month’s level of US$36.7 billion. Major inflows which contributed to the increase in reserves were deposits 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 (BSP) net foreign exchange operations and income from its investments abroad. These receipts were partly offset, however, by outflows arising mainly from payments of maturing foreign exchange obligations of the NG and the BSP.
The current GIR level can cover 6.0 months of imports of goods and payments of services and income. It was also equivalent to 5.2 times the country’s short-term external debt based on original maturity and 3.0 times based on residual maturity. 1
The level of net international reserves (NIR) as of end-July 2008, including revaluation of reserve assets and reserve-related liabilities, likewise rose by US$0.2 billion to US$36.4 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.