InterAksyon.com means BUSINESS
MANILA, Philippines - A drop in the value of the Bangko Sentral ng Pilipinas' (BSP) gold holdings and payment of maturing foreign debt caused the country's foreign exchange reserves to slide last month.
In a statement, the BSP said the country's gross international reserves (GIR) fell to $75.96 billion in April from $76.13 billion in March.
An ample GIR helps prop up the peso and keeps domestic inflation at bay.
“Maturing foreign obligations of the national government as well as revaluation losses of the BSP’s gold holdings on account of the decline in the price of gold in the international market reduced the reserve level during the month. These outflows were largely offset, however, by the investments abroad of the BSP and foreign currency deposits by authorized agent banks,” Governor Amando M. Tetangco Jr. said.
He said the BSP's gold holdings fell to $10.386 billion in April from $10.443 billion the previous month, whereas foreign investments eased to $63.337 billion from $63.535 billion in March.
Partly cushioning the impact of the lower value in gold holdings and foreign investments was the 23 percent increase in the foreign exchange income of the BSP to $411.83 million from $334.38 million in March.
Despite the drop in the GIR, the country's reserves were enough to finance 11.4 months of imports of goods and the payment of services and income.
The reserves would also allow the country to pay 10.8 times over its short-term foreign debt based on original maturity, and 6.4 times over based on residual maturity.
Excluding maturing short-term obligations, the Philippines' net international reserves stood at $76 billion last month, also lower than the $76.1 billion last March.
InterAksyon.com means BUSINESS
BUSINESS NEWS
