Preliminary data showed that the country’s gross international reserves (GIR) increased to US$79.957 billion as of end-May 2014, Bangko Sentral ng Pilipinas (BSP) Officer-in-Charge Vicente S. Aquino announced today.1 This level was higher by US$0.113 billion than the end-April 2014 GIR of US$79.844 billion. The GIR remains ample as it can cover 11.1 months’ worth of imports of goods and payments of services and income. The GIR level is also equivalent to 6.8 times the country’s short-term external debt based on original maturity and 4.8 times based on residual maturity.2
The increase in reserves was due mainly to the foreign exchange operations of the BSP and the net foreign currency deposits by the Treasurer of the Philippines (TOP). These inflows were partially offset by the revaluation adjustments on the BSP’s gold holdings and payments for maturing foreign exchange obligations of the National Government (NG).
Net international reserves (NIR), which refer to the difference between the BSP’s GIR and total short-term liabilities, also increased to US$79.941 billion as of end-May 2014, compared to the end-April 2014 NIR of US$79.828 billion.
1 The final data on GIR are released to the public every 19th day of the month in the Statistics section of the BSP’s website under the Special Data Dissemination Standards (SDDS). If the 19th day of the month falls on a weekend or is a non-working holiday, the release date shall be the working day nearest to the 19th.
2 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.