The Bangko Sentral ng Pilipinas is set to raise its forecast on the country’s foreign exchange reserves, after the figure exceeded the $80-billion mark in August.
According to BSP Governor Amando Tetangco Jr., the central bank is in the process of reviewing its projections on foreign exchange flows.
Gross international reserves (GIR) for the year was originally forecast to reach $78 billion.
“We have to adjust the GIR [projection] upward. The review is ongoing and we will make announcement of the new forecasts soon,” Tetangco told reporters during a press conference on Monday at the Philippine International Convention Center following a briefing by the Philippine government’s economic team.
Last June, monetary officials reduced its original 2012 forecast of $79 billion due to concerns over the prolonged crisis in the eurozone. The developments in Europe stoked fears that there would be a decline in foreign portfolio investments to the Philippines.
But “hot money” continued to flow strongly in the second half.
The central bank earlier this month said that the GIR amounted to $80.78 billion by the end of August, up by 6 percent from the $75.94 billion reported in the same period last year.
GIR determines a country’s ability to service its debts to foreign creditors, pay for imports, and engage in financial transactions with the rest of the world.
According to the Bangko Sentral ng Pilipinas, the latest GIR is enough to cover nearly a year’s worth of imports.—Michelle V. Remo