THE country’s gross international reserves (GIR) rose to a new record in August, boosted by higher inflows from the national government’s net foreign currency deposits and the central bank’s foreign exchange operations and income from investments abroad.
Data from the Bangko Sentral ng Pilipinas (BSP) released Wednesday showed that GIR in August stood at $85.89 billion, up 7 percent from the $80.25 billion recorded in August 2015.
Month-on-month, the August GIR was 0.45 percent higher than the $85.50 billion recorded in July, which was also a record high.
The BSP said the increase in international reserves was “partially offset by payments made by the national government for its maturing foreign exchange obligations and revaluation adjustments on the BSP’s gold holdings resulting from the decrease in the price of gold in the international market.”
The latest GIR level is enough to cover 10.5 months of merchandise imports and payments of services and income, the same import cover in July, but higher than the 10 months’ import cover recorded a year earlier.
The end-August GIR is also equivalent to six times the country’s short-term external debt based on original maturity and 4.3 times based on residual maturity, the BSP said.