Foreign reserves slump to lowest since 2012

MANILA, Philippines—The country’s foreign currency reserves fell to their lowest point since the middle of 2012, but still more than enough to cover the economy’s needs for nearly 11 months.

Data released by the Bangko Sentral ng Pilipinas showed the country’s gross international reserves stood at $79.295 billion at the end of October, lower than the $79.556 billion the month before.

This was the lowest amount since June 2012 when the reserves totaled $79.129 billion.

Officials attributed the drop to changes in the value of gold in the international market and withdrawals by the national government for foreign debt payments.

Foreign exchange reserves serve as the economy’s buffer from external crises. The economy needs a steady supply of foreign currencies to allow businesses and the government to do business with the rest of the world.