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BSP: Philippine foreign reserves grew to record-high $93.32B in end-June

The Philippines’ foreign exchange reserves grew by $30.5 million in end-June, driven mainly by the increase in deposits of the national government to the central bank.

Data released by the Bangko Sentral ng Pilipinas (BSP) on Wednesday showed the gross international reserves (GIR) stood at a record $93.32 billion as of end-June.

This is higher compared with the $93.29-billion GIR level posted in end-May, and $84.93 billion in end-June 2019.

“The month-on-month increase in the GIR level reflected inflows mainly from the National Government’s foreign currency deposits with the BSP,” the central bank said.

“These inflows were offset, however, by the foreign currency withdrawals made by the national government to pay its foreign currency debt obligations,” it noted.

The BSP said the end-June GIR level represents an ample external liquidity buffer, equivalent to 8.4 months’ worth of imports of goods and payments of services and primary income.

It can also cover about 7.3 times the country’s short-term external debt based on original maturity and 4.8 times based on residual maturity.

BSP Governor Benjamin Diokno has said the GIR was expected to reach a record-high of $94 billion by the end of 2020.

Meanwhile, the net international reserves (NIR), which refers to the difference between the BSP’s GIR and total short-term liabilities, increased by $50.2 million to $93.32 billion as of end-June from the end-May level of $93.27 billion. — RSJ, GMA News