The country’s foreign-currency buffer against global downturns hit a seven-month high in May.
The Bangko Sentral ng Pilipinas (BSP) reported a $51-million month-on-month increase in the gross international reserves (GIR), hitting $82.07 billion, from the $82.15 billion in the previous month.
“The buildup in reserves was due mainly to inflows arising from the net foreign-currency deposits by the national government, income from the BSP’s investments abroad, and revaluation adjustments on the BSP’s gold holdings resulting from the increase in the price of gold in the international market,” the central bank said.
The increase could have been larger, the BSP added, were it not offset partially by the BSP’s foreign-exchange operations and payments made by the national government for maturing foreign-exchange obligations.
The increases were in the gold holdings of the BSP, which rose from $7.9 billion to $8 billion in May. The BSP attributed this to the higher gold prices in the international market.
Inflows from the BSP’s foreign-exchange operations also increased during the month, from $3.58 billion in April to $3.65 billion in May.
The central bank endeavors to keep a market-determined foreign-exchange framework, which means the BSP allows players to dictate the movement and value of the peso.