GIR level rises to $75.49 billion in November

The country’s gross international reserves (GIR) went up to $75.49 billion as of end-November from $74.71 billion of the previous month, the Bangko Sentral ng Pilipinas (BSP) said.

In a statement, BSP Governor Nestor A. Espenilla Jr. said reserves were higher from inflows arising from the central bank’s foreign exchange operations and its income from its investments abroad.

“However, the increase in the GIR level was partially tempered by the payments made by the National Government for its foreign exchange obligations and its net foreign currency withdrawals as well as the revaluation adjustments on the BSP's gold holdings resulting from the decrease in the price of gold in the international market,” the BSP said.

Included in the GIR are foreign investments totalling $61 billion and gold reserves of $7.77 billion.

The end-November GIR level as far as BSP is concerned is still considered “ample external liquidity buffer” despite that it is lower compared to same time last year of $80.31 billion.

Current level is equivalent to 6.9 months' worth of the country’s imports of goods and payments of services and primary income.

It is also equivalent to 5.8 times short-term external debt based on original maturity and 4.1 times based on residual maturity, said the BSP.

For 2018, the BSP’s GIR projection is $80 billion. Last year reserves amounted to $81.57 billion.

The BSP has started to accumulate foreign exchange to beef up its US dollar stock when the peso regained lost ground at the last month.