PHL posts narrower foreign reserves on lower gold prices

The Philippines registered a narrower gross international reserves (GIR) last month as the value of gold in central bank vaults dipped on lower prices of precious metals in world markets, Bangko Sentral ng Pilipinas reported Friday.

 

Citing preliminary data, Bangko Sentral reported the GIR stood at $82.9 billion as of end-May, or lower by 0.36 percent from the revised $83.2 billion in April. 

 

“The slight decline in the reserves was due mainly to revaluation adjustments on the BSP's gold holdings in the international market,” Bangko Sentral governor Amando Tetangco, Jr. said in a statement.  

 

The value of gold reserves hit $8.642 billion as of end-May, the lowest since December 2011's $8.013 billion, central bank data showed. 

 

Payments for maturing government debts as well as withdrawals by a government corporation also lessened the country's reserves. 

 

Outflows were partly offset by inflows from the central bank's foreign exchange operations and income from overseas investments as well as deposits by the government. 

 

Gold reserves totaled $8.642 billion as of end-May, the lowest since December 2011 when gold  holdings amounted to $8.013 billion, central bank data showed. 

 

Payments for maturing government debts as well as withdrawals by a government corporation also lessened the country's reserves.

 

In the first five months of the year, reserves—which serve as a cushion against external shocks—registered an 8.95-percent increase from $76.082 billion as of end-May 2012. 

 

Philippine reserves in January to May were enough to cover nearly a year of imports and is 9.8 times more than the country’s total outstanding debts to foreign creditors maturing within one year. 

 

The GIR consists of foreign currency denominated holdings controlled by and available to the central bank, like gold, foreign investments and foreign exchange as well as special drawing rights or reserve assets under the International Monetary Fund.

 

Last year, the GIR amounted to $83.82 billion, slightly above the Bangko Sentral's $83 billion forecast. — SOA/VS, GMA News