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MANILA – The Philippines’ foreign exchange reserves in June rose on the back of an increase in the value of the central bank’s gold holdings.
In a statement, the Bangko Sentral ng Pilipinas on Friday said the country’s gross international reserves inched up to $76.283 billion at end-June from $76.082 billion in May.
The increase was brought about by the appreciation in the BSP’s gold holdings, which at end-June amounted to $9.980 billion from the end-May level of $9.730 billion.
The first-half GIR also was 10 percent higher than the $68.996 billion a year ago.
The year-to-date reserves are enough to pay for 11.2 months of goods imports and payments of services and income. The current GIR likewise would allow the country to pay 10.3 times over its short-term debt based on original maturity, or six times over based on residual maturity.
Residual maturity pertains to debt maturing in one year or less and principal payments on medium- and long-term obligations that are due within the year.
Ample forex reserves help prop up the peso and keep domestic inflation at bay. The peso last Tuesday hit a four-year high to close at 41.72 against the US dollar on strong forex inflows, bulk of which is helping fuel a stock market rally. The Philippine Stock Exchange index on Thursday climbed to a new record of 5,369.98.
Inflation eased to 2.8 percent last month amid slower price increases for alcoholic beverages and tobacco; housing, water, electricity, gas, and other fuels; transport; and recreation and culture. This brought the year-to-date inflation to three percent, at the low end of the BSP’s full-year target range of up to five percent.
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