The country’s gross international reserves (GIR) increased to $112 billion as of September, the highest so far, according to the Bangko Sentral ng Pilipinas (BSP).
The new GIR level surpassed the $107.9 billion recorded in August, resulting in over eight months’ worth of imports of goods payments of services and primary income for the country.
BSP also said the September level equals to about 6.3 times the country’s short-term external debt based on original maturity and 4.4 times when based on residual maturity.
It added the record GIR level was mainly driven by three sources.
First, the proceeds from the national government’s sale of global bonds which raised $2 billion in May added net foreign currency deposits with the central bank.
The Department of Finance said the government plans to borrow P2.57 trillion this year, of which 25 percent will be sourced from foreign debt.
Euro, yen floats eyed
Finance Secretary Ralph Recto said the government is also looking to offer euro and yen-denominated bonds.
Second, BSP said the value of the country’s gold reserves increased due to the hike in global prices of the asset.
Rizal Commercial Banking Corp. chief economist Michael Ricafort shared gold prices reached a new record-high of $2,600 per ounce levels or more than 10 times compared to 23 to 24 years ago.
In the first half of the year, BSP said it sold 25.95 tons of gold, the highest in the world during the period based on data collected by the World Gold Council.
Third, BSP said it also posted high net income from its investments.