Higher gold prices, the central bank’s foreign exchange operations, and the national government’s deposits boosted the Philippines’ gross international reserves (GIR) in June, the Bangko Sentral ng Pilipinas (BSP) said on Thursday.
Data from the central bank indicated GIR rose 1.25 percent in June to $83.96 billion from $82.92 billion in May.
Year-on-year, GIR was 4.1 percent higher than the $80.64 billion recorded in June 2015.
The BSP said the increase was “due mainly to the revaluation adjustments on the BSP’s gold holdings resulting from the increase in the price of gold in the international market, and the BSP’s foreign exchange operations, as well as net foreign currency deposits by the National Government (NG).”
The increase in reserves was partially offset by payments made by the national government for its maturing foreign exchange obligations.
The latest GIR level is enough to cover 10.3 months of merchandise imports and payments of services and income, higher than 10.2 percent imports cover in May, it added. It was also higher than the 10.1 months’ import cover recorded a year earlier.
The end-June dollar reserves are also equivalent to 5.9 times the country’s short-term external debt based on original maturity and 4.3 times based on residual maturity, the BSP said.