PH dollar reserves dip on gov’t debt repayments

MANILA  -The Philippines’ gross international reserves (GIR) may have fluctuated slightly downward to settle at $99.8 billion at the end of August from $100 billion in July, as the government serviced its foreign debt, as usual, while the price of gold eased.

“The month-on-month decrease in the GIR level reflected mainly the national government’s payments of its foreign currency debt obligations and the downward adjustments in the value of Bangko Sentral ng Pilipinas’ (BSP) gold holdings due to the decrease in the price of gold in the international market,” the central bank said in a statement.

Preliminary data for August show that at the end of August, BSP’s gold holdings were valued at $10.23 billion, down by 0.7 percent from $10.3 billion a month earlier.

Meanwhile, BSP’s overseas investments were pegged at $84.33 billion, down by 0.8 percent from the $83.68 million recorded in July.

The GIR level remained at an equivalent of 7.4 month’s worth of imports of goods and payments of services and primary income, which the BSP said represents a more than adequate external liquidity buffer.

“Moreover, it is also about 5.9 times the country’s short-term external debt based on original maturity and 4.1 times based on residual maturity,” the BSP added.

The GIR is considered adequate if it can finance at least three-months’ worth of the country’s import bill.