The Philippines’ gross international reserves (GIR) rose further to $108.54 billion at the end of March, from $107.98 billion a month earlier, according to preliminary data from the Bangko Sentral ng Pilipinas (BSP) show.
BSP’s reserve assets – comprising foreign investment, gold, foreign exchange, reserve position at the International Monetary Fund and special drawing rights – continued to provide a more than adequate buffer of external liquidity, it said. the regulator in a press release.
The latest level of TBA is equivalent to 9.6 months of imports of goods and payments for services and primary income. These reserves are considered adequate if they can cover at least three months.
In addition, the TBA at the end of March represented approximately 7.2 times the country’s short-term external debt on the basis of the original maturity and 5.4 times on the basis of the residual maturity.
The figures suggest that BSP’s cushion has narrowed slightly from end-February, when the GIR was equivalent to 10.2 months of imports and primary income, 8.4 times the country’s short-term external debt on the based on the original maturity and 5.8 times based on the residual maturity.
“Month after month [March over February] The increase in the level of the GIR primarily reflects the national government’s net foreign currency deposits with BSP, which include proceeds from its global bond issuance, and BSP’s net income from its overseas investments. , the regulator said.
Additionally, the BSP said its net international reserves (NIR) – the difference between the GIR and reserve commitments – rose again to $108.53 billion at the end of March, from $107.79 billion at the end of March. february.
Reserve liabilities refer to short-term external debt and International Monetary Fund credit and loans.
Earlier this week, BSP Governor Benjamin Diokno said the country’s strong external position continues to be a key credit strength as it inspires investor confidence.
Remittances from Filipino workers abroad, which reached a record $34.9 billion in 2021 and are expected to continue growing by 4% this year and next, are helping to maintain this strength.
Additionally, Diokno said, the business process outsourcing (BPO) industry remains a steady source of foreign exchange, with BPO revenue growing 9.5% in 2021.
At the same time, net foreign direct investment inflows increased by 54% to $10.5 billion.
Part of BSP’s strategy for managing its reserve assets is to increase its investments in “green” bonds, such as a series issued by the Bank for International Settlements (BIS).
From an initial investment of $150 million in the first issue dubbed BIS Investment Pool (BISIP) G1, BSP added $200 million twice to bring the total to $550 million.
The BSP also signed additional purchases through the BISIP G3, which was announced in February but which BSP officials said was still under “portfolio construction”.
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