MANILA, Philippines?The country?s reserves of foreign currencies, the key indicator of its ability to pay for imports and engage in other commercial transactions with the rest of the world, settled at $48.6 billion as of end-July, an amount the central bank considered "very comfortable."

In a report released Friday, the Bangko Sentral ng Pilipinas said the latest gross international reserves were up 21 percent from $40.17 billion at the same period last year.

Monetary officials said the rise in the reserves was consistent with the modest global economic rebound. Improving employment opportunities and, therefore, aggregate incomes of Filipinos working overseas help boost remittances sent to the Philippines, they explained.

Central bank officials also said the recovery has somewhat whetted the appetite of investors, thereby fueling foreign investments, mostly the portfolio type, in emerging markets like the Philippines. Since the start of the year, "hot money" inflows have registered year-on-year rise, they said.

The gross international reserves as of July, however, marked a 0.2-percent decline from $48.7 billion the previous month.

The month-on-month fall was attributed to a drop in prices of gold in the international market, said the BSP. Moreover, the national government likewise withdrew some of its foreign currency-denominated deposits with the central bank to pay off maturing liabilities.

Besides foreign currencies, gold also accounts for a portion of the country's GIR.

Reports said that the average gold price fell to $1,169 per ounce in end-July from $1,244 in end-June.

Data from the central bank showed that gold accounts for nearly 14 percent, at $6.68 billion, of the country's international reserves.

According to the monetary authority, the level of foreign exchange reserves was enough for the country to stay comfortable about its capacity to buy imported goods and services, and settle debts offshore.

The reserves are enough to cover nine months worth of usual imports. It was also 5.1 times the country's foreign currency-denominated debt maturing within one year.

In a study released earlier, the Asian Development Bank said foreign exchange reserves should at least be worth four months of imports for a country to stay comfortable. Countries with reserves more than the four-month threshold may consider investing portions of the money in more productive activities to benefit their economies.

The International Monetary Fund has also echoed suggestions of investing foreign exchange reserves in infrastructure and sovereign wealth funds, among other potentially higher-yielding areas.

In the case of the Philippines, its reserves are invested only in virtually risk-free assets, largely US treasuries, gold, and deposits.

BSP Governor Amando Tetangco Jr. said the central bank was studying proposals on how to make the country's reserves generate more yields. However, he added, venturing into other forms of investments would require amendment of the BSP charter.

The charter states that the BSP may only invest in government securities, deposits, and gold.