The country’s gross international reserves (GIR) have reached an all-time high of $100.49 billion or at least P4.86 trillion at the end of September, the Bangko Sentral ng Pilipinas (BSP) said on Thursday.
BSP data showed the $100.49 billion is 1.55 percent better than the July 2020 figure and a 17.42-percent increase than the amount posted a year ago. The central bank said foreign exchange operations and deposits of the government helped attain the record-high GIR figure.
In August, the GIR hit a record high of $98.95 billion.
However, the BSP said that if it were not for revaluation losses of the govemment’s gold holdings, the country’s GIR at the end of September would have been higher.
“These inflows were partly offset, however, by the revaluation losses from the BSP’s gold holdings resulting from the decrease in the price of gold in the international market and foreign currency withdrawals made by the national government to pay its foreign currency debt obligation,” it said.
With the higher GIR, the BSP said the country now has a better external liquidity buffer as the latest figure is enough to cover 10 months. August’s GIR figure was enough to cover 9.8 months.
Next year, the Bangko Sentral expects the GIR to reach $102 billion citing increased foreign currency deposits from the government “as well as positive revaluation adjustments in gold holdings as gold prices could remain elevated in 2021 due to safe-haven investor demand.”
The BSP’s projection for the country’s GIR at the end of the year is $100 billion.
The price of gold has reached $2,000 per ounce from the previous $1,400, which has prompted the government to actively trade a part of the country’s gold reserves. Approximately 12 percent of the country’s GIR are in gold. (sovereignph.com)