THE BANGKO SENTRAL NG PILIpinas Friday reported that the gross international reserves (GIR), the country?s foreign currencies and gold managed by the central bank, rose to another record $45.71 billion as of end-February from $45.59 billion in of end-January.

The latest GIR level was also higher than the $38.9 billion posted in the same month last year.

In a statement, the central bank said the increase in the GIR was a result partly of its foreign exchange operations and income from its investments in instruments issued from abroad.

The BSP purchases dollars from the foreign exchange market from time to time, specifically to temper a sharp appreciation of the peso, the strengthening of which since the start of the year has been worrying exporters. Central bank officials said the monetary authority has been intervening in the foreign exchange market to ease the rise of the peso.

The foreign exchange reserves were also boosted by the increase in the prices of gold in the international market, according to the central bank. The country?s gold holdings were valued at $5.58 billion as of end-February, up from $5.4 billion as of end-January.

The GIR indicates a country?s capacity to engage in commercial transactions with the rest of the world, largely importation of goods and services and payment of debts denominated in foreign currencies.

According to the central bank, the latest GIR was enough to cover 9.28 months? worth of imports, up from 9.25 months registered as of end-January. The latest GIR was also equivalent to 4.5 times the country?s debts maturing within the short term.

Other usual sources of inflows that boost the GIR are remittances from Filipinos overseas, export income, foreign direct investments, foreign portfolio investments, and foreign currency-denominated borrowings.

On the other hand, things that reduce the GIR include import payments, settlement of external debts and investments offshore, among others.

Central bank officials said the fact that the country?s GIR continued to rise, even during the height of the global crisis last year, showed that the Philippines? external payments position was virtually unharmed by the turmoil.

They said that the external liquidity of the Philippines was one of the sources of optimism of foreign investors and creditors, and the international financial community in general.