The country’s gross international reserves in end-January 2020 declined to $86.42 billion from the all-time high of $87.84 in end-December 2019, pulled down by the government’s settlement of foreign exchange obligations, the Bangko Sentral ng Pilipinas said Friday.
“The month-on-month decline in the GIR level reflected outflows arising from the national government’s foreign exchange withdrawal, which was used mainly to pay its foreign exchange obligations,” the BSP said in a statement.
“However, the decline was partially tempered by the BSP’s net foreign exchange purchases from its foreign exchange operations and income from its investments abroad,” it said.
“At this level, the GIR can cover 7.6 months’ worth of imports of goods and services and payments of primary income. It is also equivalent to 5.3 times the country’s short-term external debt based on original maturity and 4 times based on residual maturity,” it said.