The country’s gross international reserves (GIR) reached $17.065 billion as of end-May 2002. This level was slightly lower than the end-April 2002 level of $17.095 billion. The current level of reserves can adequately cover 5.6 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 modest decline in reserves during the period was due to debt service payments for maturing obligations of the National Government and the BSP. These outflows were, however, partly mitigated by foreign exchange inflows particularly from investment income.
The BSP’s net international reserves (BSP-NIR) as of end-May 2002 increased to $13.659 billion from $13.571 billion a month ago.