The Philippines’ gross international reserves (GIR) snapped a two-month slump in August with the Bangko Sentral ng Pilipinas (BSP) attributing the recovery to higher gold prices, investment income, and currency deposits by the national government.
Central data released on Thursday showed the country’s foreign exchange reserves at $81.51 billion, up 0.10 from July. A year earlier it was at $85.79 billion.
“The build-up in reserves was due mainly to inflows arising from the revaluation adjustments on the BSP’s gold holdings resulting from the increase in the price of gold in the international market, national government’s net foreign currency deposits, and income from the BSP’s investments abroad,” the Bangko Sentral said in a statement.
These inflows were partially offset by national government debt payments abroad and the central bank\s foreign exchange operations.
Guian Angelo Dumalagan, Land Bank of the Philippines market economist, said “it gives the BSP ample room to manage any further depreciation of the peso”.
The reserves were enough to cover 8.7 months worth of imports, the same as in July but lower than the 9.8 months recorded year earlier, central bank data showed.
It was also equivalent to 5.6 times the short-term external obligations due within one year and 3.7 times based on residual maturity.