PH foreign exchange reserves hit 2-mo high of $77.8B in Aug
The Philippines’ gross international reserves (GIR) recovered slightly in August to hit its highest level in two months, with the Bangko Sentral ng Pilipinas (BSP) attributing the result to its foreign exchange operations and the national government’s net foreign currency deposits.
Central bank data released on Friday showed the country’s foreign exchange reserves at $77.828 billion, up 1.4 percent from July but lower compared to the $81.725 billion recorded a year earlier.
It was the highest since June’s $77.525 billion.
The month-on-month increase was due “mainly to inflows arising from the national government’s net foreign currency deposits as well as the BSP’s income from its investments abroad,” the Bangko Sentral said in a statement.
In August, the government raised 154.2 billion yen or $1.39 billion from a samurai bond offer.
The inflows were partially tempered by payments made by the national government for maturing foreign exchange obligations, net foreign currency deposits and central bank income from investments abroad, the BSP’s foreign exchange operations and revaluation adjustments to its gold holdings due to lower gold prices in the international market.
The latest reserve level was enough to cover 7.5 months’ worth of imports—higher compared to July’s 7.4 months but lower from the 8.4 months recorded a year earlier. It was also equivalent to 6.2 times the country’s short-term external obligations due within one year and 4.2 times based on residual maturity.
Net international reserves, which refer to the difference between GIR and total short-term liabilities, increased to $77.82 billion from the end-July level of $76.71 billion.
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