RP forex reserves up due to state borrowings

The country’s foreign exchange reserves rose at the end of March as a result of government borrowings, deposits from agent banks and income from central bank investments abroad. The gross international reserves (GIR) grew by about $400 million to $46.2 billion as of end-March from a month earlier, the Bangko Sentral ng Pilipinas said in a statement on Wednesday. "The National Government’s deposits consisted mainly of proceeds from the issuance of Samurai bonds and other foreign borrowings," the central bank said. These receipts were offset by outflows arising from the payment of maturing state debt, it added. The government sold ¥100 billion (about $1.1 billion) worth of yen-denominated bonds in February, attracting banks, insurance companies, cooperatives and other financial institutions in Japan. The BSP said the March foreign exchange level could cover 9.1 months of imports and was 11.5 times the Philippines’ short-term foreign debt. — N.P. Aquino, GMANews.TV