PHL’s Feb. foreign reserves widen to record $77.7B – Bangko Sentral

Philippine foreign exchange reserves widened by 21.7 percent to a record $77.765 billion in February from $63.89 billion a year earlier.   Foreign currency deposits by the national government helped boost the reserves last month, said Bangko Sentral Gov. Amando Tetangco Jr.   The money came from a program loan given by multilateral lender Asian Development Bank (ADB), according to the Bangko Sentral. No amount was given for the loan.   A revaluation of central bank’s gold holdings and earnings from its overseas investments contributed to expand the foreign currency reserves, Bangko Sentral said in a statement.   Also called the gross international reserves (GIR) or the sum of all foreign exchange accruing to the country, it eclipsed the previous record $77.357 billion in January.   What helped widen Philippine foreign reserves in January was the $1.5 billion worth of US dollar-denominated bonds due 2037.   Bangko Sentral earnings from foreign investments surged 21.1 percent to $66.724 billion in February from $55.107 billion, and its gains from foreign exchange operations rose 20.9 percent to $374.54 million from $309.76 million, according to central bank data.   Its gold holdings jumped 28.2 percent to $8.888 billion from $6.97 billion. The holdings were slightly lower compared to January’s $8.895 billion due to the decline in the prices of gold in the international market.   Special drawing rights (SDR) from the International Monetary Fund (IMF) went up by 13.5 percent to $1.299 billion from $1.144 billion.   Tetangco said the inflows were offset by debt payments of the national government and the central bank. The GIR is equivalent to 11.5 months worth of imports of goods and payments of services and income, 10.9 times the country's short-term external debt based on original maturity and 6.5 times based on residual maturity, Tetangco noted.   Bangko Sentral expects the GIR at a record $79 billion this year from $75.302 billion in 2011. — VS, GMA News