The Philippines foreign reserves breached the revised US$ 55 billion projection

The Philippines foreign reserves breached the revised US$ 55 billion projection of the central bank after it rose to US$ 56.8 billion in end-October 2010.

Data released by the Bangko Sentral ng Pilipinas (BSP) Friday showed that the latest gross international reserves (GIR) jumped by 5.6 percent or US$ 3 billion from the previous month’s US$ 53.8 billion.

Last month’s amount is also far higher than the US$ 43.17 billion in October 2009.

At the end of 2009, the country’s dollar reserves totaled to US$ 44.24 billion.

BSP Governor Amando Tetangco Jr. traced this jump to the central bank’s foreign exchange operations and income from investments abroad.

He said national government’s (NG) dollar deposits from the proceeds of the new money component of its recent global bond swap and the revaluation gains from its gold holdings also increase the foreign reserves.

“These inflows were partially offset, however, by payments for maturing foreign exchange obligations of the NG,” he said.

Tetangco said the current level of GIR of the country could cover 9.9 months worth of imports of goods and payments of services and income.

He said it is also equivalent to 10.3 times the country’s short-term external debt based on original maturity and 5.6 times based on residual maturity.

Central bank defines short term debt based on residual maturity as the “outstanding external debt with original maturity of one year or less, plus principal payments on medium and long-term loans of the public and private sectors falling due within the next 12 months.”

At the end of the first half this year, the country’s foreign currency denominated debt amounted to US$ 56.992 billion.

Relatively, the country’s net international reserves (NIR) also rose to US$ 56.8 billion at the end of first 10 months this year.

This is higher than the previous month’s US$ 53.7 billion, BSP reported.

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