The country’s gross international reserves (GIR) as of end-May 2010 rose to US$47.7 billion, or about US$0.8 billion higher than the end-April 2010 level of US$46.9 billion, Bangko Sentral ng Pilipinas Governor Amando M. Tetangco, Jr. announced today.
Foreign exchange inflows in May that contributed largely to the sustained increase in the preliminary GIR level included the deposits by the National Government (NG) of loan proceeds from the government of France, foreign exchange operations of the BSP and income from its investments abroad, and revaluation gains on the BSP’s gold holdings on account of the continued increase in gold prices in the international market. These receipts were partly offset, however, by the payments of maturing foreign exchange obligations of the NG and the BSP.
The current GIR level could cover 9.4 months of imports of goods and payments of services and income. It is also equivalent to 11.9 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 climbed to US$47.6 billion as of end-May 2010, higher by US$0.7 billion than the previous month’s level of US$46.9 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.