The country’s gross international reserves (GIR) level as of end-September 2010 rose to US$53.5 billion, higher by US$3.6 billion or 7.2 percent than the previous month’s level of US$49.9 billion, Bangko Sentral ng Pilipinas (BSP) Officer-in-Charge Nestor A. Espenilla, Jr. announced today.
The appreciable build-up in the preliminary GIR level at end-September 2010 stemmed primarily from foreign exchange inflows from the foreign currency deposits by the National Government (NG) of proceeds from its ten-year peso-denominated global bonds issuance and a program loan from the World Bank, foreign exchange operations and income from investments abroad of the BSP as well as revaluation gains on the BSP’s gold holdings on account of the increase in gold prices in the international market. These inflows were partially offset, however, by payments for maturing foreign exchange obligations of the NG and foreign currency withdrawals by authorized agent banks (AABs).
The September GIR level could cover 9.4 months worth of imports of goods and payments of services and income. It was also equivalent to 9.7 times the country’s short-term external debt based on original maturity and 5.3 times based on residual maturity.
Net international reserves (NIR), which include revaluation of reserve assets and reserve-related liabilities, also stood at US$53.5 billion as of end-September 2010, up by US$3.6 billion from the previous month’s level of US$49.9 billion. NIR refers to the difference between the BSP’s GIR and total short-term liabilities.