Category : Press Release
Date : September 13, 2021
Agency : Bangko Sentral ng Pilipinas
Title : End-August 2021 GIR Level Rises to US$108.05 Billion
Article : The country’s gross international reserves (GIR) level, based on preliminary data, rose by US$0.9 billion to US$108.05 billion as of end-August 2021 from the end-July 2021 level of US$107.15 billion. The latest GIR level represents a more than adequate external liquidity buffer equivalent to 12.3 months’ worth of imports of goods and payments of services and primary income. (1) Moreover, it is also about 7.8 times the country’s short-term external debt based on original maturity and 5.4 times based on residual maturity. (2,3)

In August 2021, the increase in the reserves was due mainly to the additional allocation of Special Drawing Rights (SDR) to the Philippines given the IMF’s efforts to increase global liquidity amid the pandemic.4 This was partly offset, however, by the National Government’s (NG) foreign currency withdrawals from its deposits with the BSP as the NG settled its foreign currency debt obligations and paid for various expenditures, and the BSP’s net foreign exchange operations.

Similarly, the net international reserves (NIR), which refers to the difference between the BSP’s GIR and total short-term liabilities, increased by US$0.89 billion to US$108.04 billion as of end-August 2021 from the end-July 2021 level of US$107.15 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.
4 The distribution of SDR allocations on 23 August 2021 was proportional to the IMF members' existing quotas in the Fund.

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