The country’s gross international reserves (GIR) stood at $16.159 billion as of end-June 2004, 2.3 percent lower than last month’s level of $16.546 billion. The current GIR level was adequate to cover 4.4 months of imports of goods and payments of services and income. Alternatively, this level was equivalent to 2.3 times the country’s short-term debt based on original maturity and 1.3 times based on residual maturity. Short-term debt based on residual maturity refers 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 decline in reserves was mainly due to the debt service requirements of the National Government (NG) and withdrawal by the National Power Corporation (NPC) of its foreign exchange deposits with the BSP.
The BSP’s net international reserves (BSP-NIR) decreased by $381.0 million from end-May 2004 to $13.861 billion as of end-June 2004, inclusive of revaluation of reserve assets and reserve-related liabilities.