The country’s preliminary gross international reserves (GIR) level as of end-April 2010 climbed to US$47.0 billion, higher by US$1.4 billion than the end-March 2010 level of US$45.6 billion, Bangko Sentral ng Pilipinas Governor Amando M. Tetangco, Jr. announced today.
The build-up in reserves stemmed primarily from foreign exchange inflows arising from the deposits by the National Government (NG) of proceeds from the domestic issuance of multicurrency retail treasury bonds (RTBs) for overseas Filipinos, foreign exchange operations of the BSP and income from its investments abroad as well as revaluation gains on the BSP’s gold holdings brought about by the continued increase in the price of gold in the international market. These receipts were partly offset, however, by the payments of maturing foreign exchange obligations of the NG.
The current GIR level could cover 9.3 months of imports of goods and payments of services and income. It is also equivalent to 11.8 times the country’s short-term external debt based on original maturity and 5.3 times based on residual maturity.1
Net international reserves (NIR), which include revaluation of reserve assets and reserve-related liabilities, likewise rose to US$47.0 billion as of end-April 2010, higher by US$1.4 billion from the previous month’s level of US$45.6 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.