By Katrina Gracia Consebido
The Philippines’ gross international reserves (GIR) level rose to $96 billion as of end-December 2022 according to the Bangko Sentral ng Pilipinas (BSP).
According to the BSP, the latest GIR was higher than the end-November 2022 level of $95.1 billion.
The latest GIR level provides 7.3 months of imports, payments, and primary income. The country’s short-term external debt is 5.9 times its original maturity and 3.9 times its residual maturity.
The BSP’s net foreign exchange operations, upward valuation adjustments in the value of its gold holdings due to the rising price of gold in the international market, and net income from BSP investments abroad drove the monthly increase in the GIR level.
The net international reserves, which refers to the difference between the BSP’s reserve assets and reserve liabilities, accelerated by $0.9 billion to $96 billion as of end-December 2022 from the end-November 2022 level of $95.1 billion.
According to BSP, the reserve assets consist of foreign investments including gold, foreign exchange, reserve position in the IMF and special drawing rights.
By convention, GIR is viewed to be sufficient if it can afford at least three-months’ worth of the country’s imports of goods and payments of services and primary income. – gb
