The country’s gross international reserves (GIR) in end-June 2005 reached an all-time peak of US$17.656 billion. This was up by 2.2 percent from the US$17.281 billion a month ago. The current GIR level was adequate to cover about 4.0 months of imports of goods and payments of services and income. This level was also equivalent to 3.2 times the country’s short-term debt based on original maturity and 1.7 times based on residual maturity. Short-term debt based on residual maturity pertains to outstanding short-term external debt on original maturity plus principal payments on medium- and long-term loans of the public and private sectors falling due within the next 12 months.
The higher end-June 2005 GIR level was attributed mainly to: (a) foreign exchange deposits by the National Government; and (b) BSP’s income from investments abroad. These inflows, however, were partly offset by the foreign exchange requirements for repayments of maturing NG and BSP obligations.
The BSP’s net international reserves (BSP-NIR) as of end-June 2005, inclusive of revaluation of reserve assets and reserve-related liabilities, increased by 2.4 percent to US$16.607 billion from US$16.226 billion last month.