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BSP Governor Nestor Espenilla Jr. (TMM File Photo)

End-January 2018 GIR Level Settles at $81.2 Billion

Preliminary data showed that the country’s gross international reserves (GIR) level as of end-January 2018 slid marginally to US$81.2 billion from the end-December 2017 GIR of US$81.6 billion, Bangko Sentral ng Pilipinas (BSP) Governor Nestor A. Espenilla, Jr. announced today.1 At this level, the GIR represents more than ample liquidity buffer and is equivalent to 8.2 months’ worth of imports of goods and payments of services and primary income.

It is also equivalent to 5.8 times the country’s short-term external debt based on original maturity and 4.2 times based on residual maturity.

The month-on-month marginal decline in the GIR level was due mainly to outflows arising from the foreign exchange operations of the BSP and payments made by the National Government (NG) for its maturing foreign exchange obligations.

These were partially tempered by the NG’s net foreign currency deposits, revaluation adjustments on the BSP’s gold holdings resulting from the increase in the price of gold in the international market as well as its income from investments abroad.

Net international reserves (NIR), which refer to the difference between the BSP’s GIR and total short-term liabilities, decreased by US$0.4 billion to US$81.2 billion as of end-January 2018 from the end-December 2017 NIR of US$81.6 billion.

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