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PHL foreign reserves reach $85.18B as of end-July

The Philippines’ gross international reserves (GIR) expanded to P85.18 billion as of end-July 2019 on the back of the central bank’s foreign exchange operations.

Preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed that the GIR level was $25 million more than the $84.93-billion recorded as of end-June 2019.

“The month-on-month increase in the GIR level was due mainly to inflows arising from the BSP’s foreign exchange operations and income from its investments abroad as well as the national government’s net foreign currency deposits,” BSP Governor Benjamin Diokno said Wednesday.

“However, the increase in reserves was tempered by payments made by the national government for servicing its foreign exchange obligations,” Diokno said.

The end-July GIR level is ample external liquidity buffer equivalent to 7.4 months’ worth of imports of goods and payments of services and primary income, the central bank chief said.

It is also equivalent to 5.2 times the country’s short-term external debt based on original maturity and 3.8 times based on residual maturity.

Net international reserves (NIR), or the difference between the BSP’s GIR and the total short-term liabilities, increased by $0.25 billion to $85.18 billion from $84.93 billion month-on-moth. —VDS, GMA News