PH reserves rise to $101.3B in Nov

THE country's gross international reserves (GIR) increased to $101.3 billion in November, the Bangko Sentral ng Pilipinas (BSP) reported late on Thursday, up $268.6 million from $101.0 billion a month earlier.

The increase was primarily caused by higher valuations of the central bank's gold holdings — driven by rising global gold prices — as well as earnings from overseas investments.

The amount, the BSP said in a statement, «represents a more than adequate external liquidity buffer equivalent to 7.5 months' worth of imports of goods and payments of services and primary income.»

It is also equivalent to around «5.8 times the country's short-term external debt based on original maturity and 3.6 times based on residual maturity.»

GIR levels are considered adequate «if it can finance at least three months' worth of the country's imports of goods and payments of services and primary income,» the BSP said.

Net international reserves, which comprise the difference between GIR and reserve liabilities, increased by $200 million to $100.5 billion as of the end of November from the end-October level of $100.3 billion.

GIR consists of the BSP's foreign investments, gold, foreign exchange, a reserve position in the International Monetary Fund, and special drawing rights.

Sought for comment, Rizal Commercial Banking Corp. chief economist Michael Ricafort the GIR recorded net growth this year due to a sustained rise in structural inflows of US dollars and foreign currencies.

"[R]elatively high GIR at $101.3 billion could still strengthen the country's external position, which is a key pillar for the country's continued favorable credit ratings for the second straight year," he added.

«The continued increase in fund-raising and other investment banking activities by the country's biggest companies… could entail some increase in foreign investment inflows that could add to the country's balance of payments and GIR, on a cash flow basis.»