Preliminary data showed that the country's gross international reserves (GIR) level stood at US$80.79 billion as of end-July 2017, Bangko Sentral ng Pilipinas (BSP) Governor Nestor A. Espenilla, Jr. announced today.1 This level was lower by US$0.53 billion than end-June 2017 GIR of US$81.32 billion but higher by US$0.1 billion than the end-2016 level. This level could adequately cover 8.6 months' worth of imports of goods and payments of services and primary income. It is also equivalent to 5.5 times the country's short-term external debt based on original maturity and 3.7 times based on residual maturity.2

The month-on-month decline in the GIR level was due mainly to outflows arising from the BSP's foreign exchange operations and payments made by the National Government (NG) for its maturing foreign exchange obligations. These were partially offset by revaluation adjustments on the BSP's gold holdings resulting from the increase in the price of gold in the international market and net foreign currency deposits by the NG as well as BSP's income from its investments abroad.

Net international reserves (NIR), which refer to the difference between the BSP's GIR and total short-term liabilities, decreased by US$0.54 billion to US$80.78 billion as of end-July 2017, compared to the end-June 2017 NIR of US$81.32 billion.

Source: Bangko Sentral ng Pilipinas (BSP)