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PH foreign reserves reach $83-B in August

Rappler.com
The Philippines' forex reserves can cover 12 months worth of imports of fuel and commodities if ever an external shock causes dollar shortages

HEALTHY LEVEL. The Philippines has foreign reserves that can cover up to a year's worth of imports. File photo by AFP

MANILA, Philippines – Gross international reserves (GIR) — the total foreign transaction flowing into the Philippines — reached US$83.201 billion as of end-August, $29 billion more than in July.

READ: Philippine forex reserves up 2% at $82.9-B in July

Higher gold prices and the BSP’s foreign exchange operations were the main contributors to the higher GIR for the month, preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed.

The BSP has been buying of dollars to help control fluctuations in the peso’s value.

In a statement Friday, September 6, the Bangko Sentral ng Pilipinas (BSP) said this can cover 12 months worth of imports of fuel and commodities if ever an external shock causes dollar shortages.

August is the 12th time the GIR could cover up to over a year’s worth of imports.

This GIR level is also equivalent to 8 times the Philippines’ short-term external debt, based on their original maturities.

Foreign currency deposits by the National Treasury, as well as income from investments abroad also contributed to the GIR hike.

Net international reserves, or the difference between the GIR and the BSP’s short-term liabilities, increased to $83.195 billion as of end-August, or $28 million more than in July. – Rappler.com

 

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