The country’s gross international reserves (GIR) stood at US$21.164 billion as of end-July 2006, up by US$41 million from the end-June 2006 level of US$21.123 billion. The preliminary July GIR level is adequate to cover about 4.3 months of imports of goods and payments of services and income. This level is also equivalent to 3.5 times the country’s short-term debt based on original maturity and 1.9 times based on residual maturity. 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.
The GIR level increased, even as the BSP repaid its maturing foreign exchange obligations as well as those of the National Government, due mainly to the Bangko Sentral’s foreign exchange operations and income from investments abroad.
Net international reserves (NIR), including revaluation of reserve assets and reserve-related liabilities, reached US$20.737 billion, an increase of US$235 million from the end-June 2006 level of US$20.502 billion. NIR refers to the difference between the BSP’s GIR and the combined total of short-term liabilities and use of Fund credits.