PH forex stock up to $80.3B

Dollars stashed by the central bank for rainy days rose slightly at the end of September despite volatile conditions in financial markets, data released on Wednesday showed.

In a statement, the Bangko Sentral ng Pilipinas reported an improvement in the country’s gross international reserves (GIR) last month, implying strong foreign exchange inflows.

The BSP credited the increase to “foreign exchange operations, and its income from investments abroad.” Dollar deposits by the government also helped prop up the country’s dollar stock.

These inflows were partially offset by government foreign debt payments and revaluation adjustments on the BSP’s assets in the form of gold and foreign currencies other than the greenback.

At the end of September, the country’s GIR reached $80.31 billion, up from $80.26 billion the month before. The country’s reserves were enough to cover 10.3 months’ worth of imports and 6.1 times the economy’s external debt based on original maturity.

International best practices require countries to maintain reserves enough for three to six months’ worth of imports of goods and services.

The stability in the country’s reserves, which are the economy’s last line of defense from external stresses, came despite volatility in financial markets.