Debt payments cut RP's foreign exchange reserves
11/07/2008 | 10:14 PM
MANILA, Philippines - The Philippines’ foreign exchange reserves fell in October, whittled down by lower gold prices and debt payments, the Bangko Sentral ng Pilipinas (BSP) said.
The country’s gross international reserves (GIR) dropped to $35.7 billion, $1 billion less than the amount reported in September, data from the BSP said.
Lower GIR was brought about by reduced gold prices in the international market which prompted the BSP to revalue its gold holdings to $3.51 billion from $3.85 billion the previous month.
Foreign exchange reserves were also pared down as the national government withdrew dollars and used them to pay for its maturing obligations. Earlier, the state-led Power Sector Assets and Liabilities Management Corp. (PSALM) withdrew dollars deposited with the BSP, further cutting the GIR.
GIR represents the total of the country’s foreign exchange inflows, including export earnings, remittances, foreign borrowings, and investments.
However, despite the GIR drop, the BSP remained confident that current foreign exchange levels were sufficient enough to cover 5.6 months of imports. It was also equivalent to more than three times of its short-term debts.
Moreover, current foreign exchange reserves remain higher than figures of October last year, which stood at $32.498 billion.
The Philippines’ GIR is projected to reach $37 billion this year, the BSP earlier announced. - GMANews.TV
The country’s gross international reserves (GIR) dropped to $35.7 billion, $1 billion less than the amount reported in September, data from the BSP said.
Lower GIR was brought about by reduced gold prices in the international market which prompted the BSP to revalue its gold holdings to $3.51 billion from $3.85 billion the previous month.
Foreign exchange reserves were also pared down as the national government withdrew dollars and used them to pay for its maturing obligations. Earlier, the state-led Power Sector Assets and Liabilities Management Corp. (PSALM) withdrew dollars deposited with the BSP, further cutting the GIR.
GIR represents the total of the country’s foreign exchange inflows, including export earnings, remittances, foreign borrowings, and investments.
However, despite the GIR drop, the BSP remained confident that current foreign exchange levels were sufficient enough to cover 5.6 months of imports. It was also equivalent to more than three times of its short-term debts.
Moreover, current foreign exchange reserves remain higher than figures of October last year, which stood at $32.498 billion.
The Philippines’ GIR is projected to reach $37 billion this year, the BSP earlier announced. - GMANews.TV
