Preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed that the country’s gross international reserves (GIR) level as of end-July 2010 reached US$48.6 billion, slightly lower by US$0.1 billion than the previous month’s level of US$48.7 billion, BSP Governor Amando M. Tetangco, Jr. announced today.
The lower level of reserves at end-July 2010 arose mainly from revaluation losses on the BSP’s gold holdings on account of the decline in the price of gold in the international market, payments by the National Government (NG) for its maturing foreign exchange obligations, and foreign currency withdrawals by authorized agent banks (AABs). These outflows were offset, however, by receipts from the foreign exchange operations of the BSP and income from its investments abroad, as well as the NG’s foreign currency deposits with the BSP.
The current GIR level could cover 9.0 months of imports of goods and payments of services and income. It is also equivalent to 9.3 times the country’s short-term external debt based on original maturity and 5.1 times based on residual maturity. 1
Net international reserves (NIR), which include revaluation of reserve assets and reserve-related liabilities, stood at US$48.6 billion as of end-July 2010, lower by US$0.1 billion than the previous month’s level of US$48.7 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.