Preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed that the country’s gross international reserves (GIR) level as of end-January 2010 rose to US$45.4 billion, higher by US$1.2 billion than the end-December 2009 level of US$44.2 billion, Officer-In-Charge Armando L. Suratos announced today.
The increase in the GIR level was due mainly to foreign exchange inflows from the National Government’s (NG) deposit of the proceeds from the reopening of its two bond issuances maturing in 2020 and 2034, as well as the BSP’s foreign exchange operations and income from its investments abroad. These receipts were partly offset by outflows arising from the payment of maturing foreign exchange obligations of the NG, foreign currency withdrawals by authorized agent banks (AABs), and revaluation losses on the BSP’s gold holdings due to a drop in the price of gold in the international market in January 2010 following recent gains in the US dollar.
The current GIR level could cover 9.2 months of imports of goods and payments of services and income. It is also equivalent to 10.1 times the country’s short-term external debt based on original maturity and 5.4 times based on residual maturity. 1/
Net international reserves (NIR) level, which includes revaluation of reserve assets and reserve-related liabilities, likewise rose to US$45.4 billion as of end-January 2010, US$1.2 billion higher than the previous month’s level of US$44.2 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.