The country’s gross international reserves (GIR) stood at US$18.086 billion as of end-October 2005. While this was lower by 2.5 percent compared to the previous month’s level of US$18.542 billion, it exceeded the end-2005 target of US$17 billion. The end-October GIR level was adequate to cover about 4.0 months of imports of goods and payments of services and income. This level was also equivalent to 3.0 times the country’s short-term debt based on original maturity and 1.6 times based on residual maturity. 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.
As expected, the decline in the GIR level was attributed mainly to the payments of maturing foreign exchange obligations of the National Government (NG) and the Bangko Sentral. The outflows, however, were partly offset by Bangko Sentral’s foreign exchange operations and income from investments abroad.
Net international reserves, inclusive of revaluation of reserve assets and reserve-related liabilities, decreased to US$17.249 billion from US$17.704 billion a month ago.