PHL's March foreign reserves widen to $66B, says Bangko Sentral

The Bangko Sentral ng Pilipinas (BSP) on Thursday reported a $2.3-billion rise in Philippine foreign exchange reserves, $66.2 billion in March, indicating the country’s capacity to pay maturing loans and support imports. The Philippines also registered $63.9 billion in gross international reserves (GIR) in February. Net international reserves, which net out foreign loans maturing in a year or less from the GIR computation, expanded enough that maturing debts could be safely sidelined. The BSP said the steadily growing GIR was partially boosted by proceeds from the national government’s sale of global bonds amounting to $1.5 billion, as well as by BSP activities related to foreign exchange. So-called revaluation gains on the BSP’s gold holdings also contributed to the expanding GIR as the price of the precious metal also rose last month. “These inflows were partially offset, however, by payments for maturing foreign exchange obligations of the national government," said BSP Deputy Gov. and officer-in-charge Juan de Zuniga Jr. BSP Gov. Amando Tetangco Jr. sees the year-end GIR at $70 billion as foreign fund managers and investors place more money in emerging markets like the Philippines. Larger economies like the United Kingdom have expressed interest in expanding in the country. The GIR level now shows that the Philippines’ foreign exchange reserves have grown larger than the country’s foreign debt, which was last estimated at $60 billion. The BSP said the GIR by the end of March could also cover 10.2 months worth of imported goods, services, and income. The global yardstick sets a GIR target that equals at least three months worth of a country’s merchandise exports and its service payments. — PE/ VS, GMA News