The country’s gross international reserves (GIR) rose to $84.024 billion as of end-November 2013, data from the Bangko Sentral ng Pilipinas (BSP) showed on Friday.
Preliminary data from the BSP showed that the country’s international reserves for the January to November was higher by $400 million from the end-October reserve figure of $83.61 billion.
“At this level, reserves can adequately cover 12 months worth of imports of goods and payments of services and income,” BSP Governor Amando Tetangco Jr. said.
The GIR is also equivalent to nine times the country’s short-term external debt based on original maturity, and six times based on residual maturity, he added.
The reserves for the first 11 months of the year was higher compared to the $83.93 billion recorded in the same period last year.
Meanwhile, the central bank said that the increase in the GIR in November can be attributed to the foreign exchange operations and income from investments of the BSP, as well as foreign currency deposits by the Treasurer of the Philippines.
“These inflows were partially offset by payments by the national government for its maturing foreign exchange obligations and revaluation adjustments on the BSP’s gold holdings” the BSP added.
The international reserves are foreign assets that are readily available to and controlled by the central bank for direct financing of payments imbalances, and for managing the magnitude of such imbalances.
The reserves consist of holdings of gold, special drawing rights, foreign investments, and foreign exchange, including Reserve Position in the Fund. These assets are valued mark-to-market. Higher reserves help prop up the peso and keeps domestic inflation at bay.
On the other hand, the data showed that net international reserves (NIR), also increased by $400 million to reach $84 billion as of end-November 2013, compared to the end-September 2013 NIR of $83.6 billion.
NIR refers to the difference between the BSP’s GIR and total short-term liabilities.