PHL forex reserves surge 44% to record $68.7B in May

The country's gross international reserves (GIR) widened by 44.2 percent to a record $68.76 billion as of end-May from $47.69 billion a year earlier, the Bangko Sentral ng Pilipinas said Tuesday. Strong earnings by central bank investments abroad and its foreign exchange operations helped grow the country’s foreign exchange reserves, BSP Governor Amando Tetangco Jr. said in a statement Tuesday. The GIR is the sum of all foreign exchange flowing into the country. The BSP said the GIR could likely hit a new record of $70 billion this year and $75 billion next year. BSP data also showed that the central bank's income from investments abroad soared 49.9 percent to $59.25 billion in May, from $39.51 billion in a year-on-year. Its gold holdings, meanwhile, jumped 13.8 percent to $7.59 billion in the same comparable period. Income from foreign exchange operations, on the other hand, rose by 23.4 percent to reach $374.72 million. Revaluation losses However, foreign exchange inflows as of end-May were partially offset by disbursements for government's maturing foreign exchange obligations, Tetangco pointed out. "These inflows were [also] partially trimmed down by... revaluation losses on the BSP's gold holdings on account of the month-on-month slight decline in gold prices in May," the BSP chief added. Nonetheless, Tetango said the GIR last month could cover 10.6 months' worth of imports of goods, payments of services and income. — JMT/VS, GMA News