The country's gross international reserves (GIR) increased by US$0.3 billion to reach US$68.8 billion as of end-May 2011 from the previous month's level of US$68.5 billion, Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco, Jr. announced today.
The sustained rise in the reserves level was mainly due to the foreign exchange operations and income from investments abroad of the BSP. These inflows were partially trimmed down by payments of the National Government for its maturing foreign exchange obligations as well as revaluation losses on the BSP's gold holdings on account of the month-on-month slight decline in gold prices in May.
The preliminary end-May 2011 GIR could cover 10.6 months worth of imports of goods and payments of services and income. It was also equivalent to 10.9 times the country's short-term external debt based on original maturity and 6.0 times based on residual maturity.1
Net international reserves (NIR), which include revaluation of reserve assets, reached US$68.7 billion as of end-May 2011, higher by US$0.2 billion compared to the end-April 2011 NIR level of US$68.5 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.