Quantcast
Latest Stories

Philippines GIR up 10% year on year in May

By

The Philippines’ gross international reserves hit $76.02 by end of May 2012, up by 10 percent year on year, the central bank said. AFP PHOTO

MANILA, Philippines—The country’s foreign exchange reserves climbed in May from a year ago, buoyed by sustained rise in remittances and recovery in export revenues even in the wake of a prolonged debt crisis in the eurozone.

The gross international reserves (GIR)—the country’s foreign-exchange wealth that determines its ability to buy imported goods, pay debts to foreign creditors, and engage in other financial transactions with the rest of the world—hit $76.02 billion by the end of May, up by about 10 percent from $68.85 billion in the same period last year.

According to the central bank, remittances continued to be a key driver of foreign exchange inflows into the Philippines. This is because of the diversified labor markets for Filipino workers that make total remittances almost immune from the crisis in the eurozone.

Moreover, the export sector registered higher revenues this year, thus recovering from last year’s earnings contraction, as global demand, although still fragile, slightly picked up.

The latest GIR, nonetheless, fell on a month-on-month basis. It was down by 0.7 percent from $76.54 billion by the end of April due largely to withdrawals by the national government.

The BSP said the government paid foreign currency-denominated debts that were about to fall due, thereby causing the drop in the reserves.

“The slight decline in the GIR level (from that in April) resulted mainly from disbursements arising from payments by the national government for its maturing foreign exchange obligations as well as revaluation losses on the BSP’s gold holdings,” the central bank said in a statement.

A small portion of the country’s GIR is composed of gold holdings. A decline in the price of gold, therefore, pulls down the GIR. Of the latest amount foreign exchange reserves, gold accounted for $9.7 billion.

The drop in gold prices was blamed on uncertainties in the global economy resulting from the debt woes in the eurozone. Analysts said that in times of uncertainty, investors would sell gold, thereby causing its prices to drop, and hold on to the US dollar for safety.

The latest GIR, according to the central bank, was enough to cover for 11.4 months worth of imports. It was also 6.6 times the country’s foreign currency-denominated debt maturing within one year.

These facts, monetary officials said, indicated that the GIR has remained at a very comfortable level since foreign exchange reserves worth at least four months of imports are considered already comfortable.

They said the fact that the GIR has been way more than the country’s short-term foreign debts indicated a favorable level of credit-worthiness.

Government officials are pitching for an investment grade for the Philippines. The BSP said the comfortable GIR would be one good basis for a more favorable credit rating for the Philippines.

The country is rated two notches below investment grade by Moody’s and Standard & Poor’s, and one notch below investment grade by Fitch Ratings.


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Bangko Sentral ng Pilipinas , business and finance , economy , gross international reserves

  • samarutan

    Yay! Go, angat Pilipinas! No turning back this time!

  • http://www.neverendingfootsteps.com/2011/12/14/the-things-i-hated-most-about-china/ Lucky Luciano

    Wow. Good Job.

  • http://www.facebook.com/profile.php?id=100000532465679 Donardo Cuago

    KEEP IT UP!
    I bet Greece and Spain will do anything to be in our financial position.

  • Jun Go

    wow more good news, mabuhay ang bansang pilipinas!



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • Colombia hopes to share Garcia Marquez remains
  • Holy fire ceremony draws thousands in Jerusalem
  • Tanchanco, former NFA head; 83
  • Pope seeks to bring faith to ‘ends of the Earth’
  • Meteor shower to light up PH skies
  • Sports

  • Pacquiao top Mayweather contender
  • Rain or Shine, Ginebra clash for No. 6 spot
  • Ateneo eyes quarterfinal spot vs Benilde
  • Style contrast marks OneFC ‘Rise of Heroes’
  • ‘Pacquiao a great ambassador for basketball’
  • Lifestyle

  • Noli Yamsuan, Cardinal Sin’s ‘official’ photographer: ‘I could smell the aftershave lotion of the Pope’
  • Simplifying and lightening life
  • Where to go for Easter night-out
  • Joe de Venecia visits the Queen Mother of Cambodia
  • Fashionistas flock to designer’s wedding
  • Entertainment

  • Why ‘Noah’ can’t dock his ark at Philippine theaters
  • Acclaimed artist goes wild while on holiday
  • Believing in this mermaid
  • Missing Xian
  • Awarded TV couple brings Jesus’ life to the big screen
  • Business

  • Top-selling insurance agent opens her dream café
  • Connecting and transacting with one another
  • Building wealth for health
  • Why Mandaue Foam buys, rather than rents, space
  • A workplace of new possibilities
  • Technology

  • Nasa’s moon-orbiting robot crashes down
  • Netizens pay respects to Gabriel Garcia Marquez
  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Facebook rolls out ‘nearby friends’ feature
  • Netizens seethe over Aquino’s ‘sacrifice’ message
  • Opinion

  • Epiphany
  • Unpaid creditor vs distressed debtor
  • Moving on
  • From culinary desert to paradise
  • Response to China: ‘Usjaphil’
  • Global Nation

  • Asia seeks Obama’s assurance in territorial spats
  • Cesar Chavez movie sparks memories of Fil-Am labor leaders
  • Filipinos in US poised for success
  • Visas for priests and other faith leaders
  • DOH to continue tracking co-passengers of OFW infected with MERS virus
  • Marketplace