The country’s gross international reserves (GIR) reached $16.885 billion as of end-June 2002. This level was slightly lower than the end-May 2002 level of $17.089 billion. The current level of reserves could adequately cover 5.5 months worth of imports of goods and payment of services and income. Using other reserve coverage measures, the level of reserves was 3.2 times the amount of the country’s short-term external debt based on original maturity. Alternatively, it was equivalent to 1.5 times the amount of the country’s short-term external obligations based on residual maturity.
The slight decline in reserves during the period was due to debt service payments for maturing obligations of both the National Government and the BSP. These outflows were, however, partly mitigated by the deposit by the National Government of the proceeds of the reopened seven-year U.S. securities-registered global bonds.
The BSP’s net international reserves (BSP-NIR) as of end-June 2002 decreased to $13.484 billion from $13.712 billion a month ago.