The country is expected to accumulate more foreign exchange next year in that its gross international reserves (GIR) level is seen hitting a historic high of $79 billion.
This is according to the Bangko Sentral ng Pilipinas, which said the existing reserves of $76 billion would be further boosted next year with sustained foreign exchange inflows, led by remittances.
In a briefing arranged by the Foreign Correspondents Association of the Philippines (Focap) Wednesday, BSP Governor Amando Tetangco Jr. said remittances were likely to grow to more than $21 billion next year from the estimated $20.1 billion this year.
The favorable outlook on remittances is anchored on sustained demand for Filipino workers by employers offshore.
This is despite unencouraging economic conditions in countries like the United States and those in the eurozone.
Officials said the government had been continuously forging employment deals with various countries to help ensure job postings for Filipino workers.
“For this year, we are right on target as far as remittances are concerned,” Tetangco said, adding that in the first 10 months of the year, remittances have registered a 7-percent growth year on year. The BSP set the remittances growth target for this year at 7 percent.
The rise in the foreign exchange inflows allows the BSP to increase its purchases and beef up the GIR.
The current GIR level of $76 billion is enough to cover 11 months’ worth of imports and is about six times more than the country’s short-term foreign currency-denominated debts.
The BSP considers this level of GIR comfortable. It indicates the improving capacity of the country to meet its foreign obligations.