End-February 2014 GIR Increases to $80.3B

Manila—(PHStocks)—Preliminary data showed that the country’s gross international reserves (GIR) rose to $80.3 billion as of end-February 2014, Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco, Jr. announced today. This level was higher by $0.8 billion than the end-January 2014 GIR of $79.5 billion.

The level of reserves remains comfortable as it can amply cover 11.5 months’ worth of imports of goods and payments of services and income. The GIR is also equivalent to 7.9 times the country’s short-term external debt based on original maturity and 5.7 times based on residual maturity.

The increase in reserves was due mainly to the revaluation adjustments on the BSP’s gold holdings, as well as the BSP’s foreign exchange operations and income from investments.  These inflows were partially offset by payments of the National Government (NG) for its maturing foreign exchange obligations.

Net international reserves (NIR), which refer to the difference between the BSP’s GIR and total short-term liabilities, also increased by US$0.8 billion to reach $80.3 billion as of end-February 2014, compared to the end-January 2014 NIR of $79.5 billion.