Gross international reserves rise in May 

The Bangko Sentral ng Pilipinas (BSP) said Friday preliminary data showed that the country's gross international reserves (GIR) rose to $105.5 billion as of end-May from $105.3 billion in April, according to a report by Philippine News Agency.

In a statement Friday, the BSP said the month-on-month increase reflected mainly the upward valuation adjustments in the BSP gold holdings due to the increase in the price of gold in the international market, net income from the BSP’s investments abroad, and the national government’s net foreign currency deposits with the BSP.

The BSP’s reserve assets consist of foreign investments, gold, foreign exchange, reserve position in the International Monetary Fund (IMF), and special drawing rights.

The net international reserves, which refers to the difference between the central bank’s reserve assets (GIR) and reserve liabilities (short-term foreign debt and credit and loans from the IMF), also increased to USD105.34 billion in May from USD105.26 billion in April.

"This latest GIR level provides a robust external liquidity buffer, equivalent to 7.3 months' worth of imports of goods and payments of services and primary income," the BSP said.

It also covers about 3.7 times the country's short-term external debt based on residual maturity.

By convention, the 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.