Higher gold prices lift Philippines reserves to $104.81 billion in August
The country’s foreign exchange buffer rose to a five-month high in August as higher global gold prices lifted the Bangko Sentral ng Pilipinas (BSP)’s gold holdings, helping keep reserves adequate despite government debt payments.
Manila, Philippines — The Bangko Sentral ng Pilipinas (BSP) reported a five-month high in foreign exchange buffer reserves in August, driven by rising global gold prices that boosted the central bank's holdings. Preliminary data revealed gross international reserves (GIR) increased by 1.4 percent to $104.81 billion by the end of August, up from $103.32 billion in July.
GIR represents the country's stock of foreign currency resources, including gold, deposits, securities, and other assets, which can be utilized for imports, debt repayment, and economic stability. This level was the highest since March, when it reached $106.64 billion, but 2.1 percent lower than the $107.1 billion seen in August of the previous year.
UnionBank chief economist Ruben Carlo Asuncion attributed the increase to valuation gains in BSP gold holdings due to higher global prices and income from investments abroad, although these gains were partially offset by the government's drawdowns for external debt. Gold reserves expanded by 9.3 percent to $19.11 billion in August, compared to $17.49 billion a month earlier, while a year ago, they rose 31.6 percent to $14.52 billion.
The current GIR level can cover up to 6.8 months of imports and services, and it is equivalent to 3.7 times the country's short-term external debt based on residual maturity. Asuncion noted that future reserves will depend on gold prices, investment earnings, foreign financing flows, and government currency transactions.
Written by urgent.news from Philippine Star Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
