PHL foreign reserves widen to $75B in 2011 from $62B

The Philippines’ foreign reserves widened by $12.762 billion to $75.135 billion last year, from $62.373 billion a year earlier.   The gross international reserves (GIR) is enough to pay for 11.1 months worth of imports, as well as 10.5 times worth of short-term external debt based on original maturity and 6.8 times based on residual maturity, Bangko Sentral ng Pilipinas Gov. Amando Tetangco Jr. noted in a statement Friday.   "The build-up of reserve assets in 2011 was due mainly to sustained foreign exchange inflows from overseas Filipinos' remittances, business process outsourcing services receipts, and direct and portfolio investments," the central bank chief said.   Higher revaluation gains from Bangko Sentral's gold holdings and foreign currency-denominated reserves, and earnings from its foreign exchange operations and investments abroad added to boost Philippine foreign reserves, Tetangco added.   Bonds and other borrowings by the national government placed in global markets were also cited as plus factors the expanded the country’s foreign reserves.   “The end-December 2011 GIR, however, was lower by $1.1 billion than the previous month’s level of $76.2 billion, on account mainly of the negative revaluation on the BSP’s gold and foreign currency-denominated reserves and debt service payments by the NG,” the central bank said in a statement.   “Net international reserves, which include revaluation of reserve assets, rose to $75.1 billion as of end-December 2011, higher by $12.7 billion compared to the year-ago… level of $62.4 billion,” it added.   A net foreign reserve, according to the central bank, refers to the difference between its GIR and total short-term liabilities. — VS, GMA News