Category : Press Release
Date : July 15, 2020
Agency : Bangko Sentral ng Pilipinas
Title : End-June 2020 GIR Level Reaches An All-Time High of US$93.32 Billion
Article : The country’s gross international reserves (GIR) level, based on preliminary data, rose by US$30.5 million to US$93.32 billion as of end-June 2020 from the end-May 2020 level of US$93.29 billion. The month-on-month increase in the GIR level reflected inflows mainly from the National Government’s foreign currency deposits with the BSP. These inflows were offset, however, by the foreign currency withdrawals made by the National Government to pay its foreign currency debt obligations.

The end-June 2020 GIR level represents an ample external liquidity buffer, which is equivalent to 8.4 months’ worth of imports of goods and payments of services and primary income.1 Moreover, it is also about 7.3 times the country’s short-term external debt based on original maturity and 4.8 times based on residual maturity.2,3

Similarly, the net international reserves (NIR), which refers to the difference between the BSP’s GIR and total short-term liabilities, increased by US$50.2 million to US$93.32 billion as of end-June 2020 from the end-May 2020 level of US$93.27 billion

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1 By convention, GIR is viewed to be adequate if it can finance at least three-months’ worth of the country’s imports of goods and payments of services and primary income.
2 Short-term debt based on residual maturity refers to 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.
3 The level of GIR, as of a particular period, is considered adequate, if it provides at least 100 percent cover for the payment of the country’s foreign liabilities, public and private, falling due within the immediate twelve-month period.


View Table - http://www.bsp.gov.ph/publications/tables/2020_07/news-07152020b1.htm