THE level of the country’s dollar defenses against economic imbalances improved but remained below $100 billion in October, according to the Bangko Sentral ng Pilipinas (BSP).
The country’s gross international reserves (GIR) level, based on preliminary data, rose to $94.1 billion as of end-October 2022 from the end-September 2022 GIR level of $93 billion.
A year ago, BSP data showed, the country’s GIR amounted to $107.89 billion. This means, the GIR level of the country in October 2022 contracted year on year by 12.8 percent.
“The latest GIR level represents a more than adequate external liquidity buffer equivalent to 7.5 months’ worth of imports of goods and payments of services and primary income,” the BSP said, however.
“It is also about 6.7 times the country’s short-term external debt based on original maturity and 4 times based on residual maturity,” it added.
On a month on month basis, BSP said, the GIR level improved 1.15 percent. This improvement, the BSP said, was attributed to the National Government’s (NG) net foreign currency deposits with the BSP.
These deposits included proceeds from its issuance of ROP Global Bonds, and upward valuation adjustments in foreign currency-denominated reserves or non-gold reserves.
“The level of GIR, as of a particular period, is considered adequate, if it provides at least 100-percent cover for the payment of the country’s foreign liabilities, public and private, falling due within the immediate 12-month period,” BSP explained.
The BSP data also showed net international reserves, which refers to the difference between the BSP’s reserve assets and reserve liabilities, increased as of the end of October.
There was an increase of $1 billion to $94 billion as of end-October 2022 from the end-September 2022 level of $93 billion.
BSP reserve assets are the GIR while reserve liabilities include short-term foreign debt and credit and loans from the International Monetary Fund (IMF).
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