Foreign reserves rise on higher gold prices, govt loans

MANILA, Philippines - Higher gold prices and the national government’s dollar loan proceeds increased the Philippines’ foreign exchange reserves last month, the Bangko Sentral ng Pilipinas (BSP) said. The country’s gross international reserves (GIR) went up by 0.26 percent to $39.3 billion as of end- February from $39.2 billion the previous month, the BSP said in a statement released in its website. The country’s dollar supplies are enough to to cover 5.9 months of imports of goods and payments of services and income. The rise was the result of the national government’s deposits of loan proceeds from the World Bank and the Asian Development Bank and higher prices of BSP gold holdings, BSP Governor Amando M. Tetangco said. Inflows from the BSP’s net foreign exchange operations aside from revaluation gains in the gold holdings on higher gold prices in the international market in February helped beef up GIR. "These inflows were partly offset by payments of maturing foreign exchange obligations of the NG and the BSP," Tetangco added. Net international reserves (NIR) – which is the difference between the BSP’s GIR and total short-term liabilities – inched up by 1.59 percent month-on-month to $38.3 billion from $37.7 billion. NIR includes revaluation of reserve assets and reserve-related liabilities. - Ruby Anne M. Rubio, GMANews.TV