Connect with us

Hi, what are you looking for?

News

Philippines’ dollar reserves hit new record

The Philippines’ dollar reserves reached a new all-time high as of end-2020, the central bank said on Friday.

GROSS international reserves (GIR) — which shield the country from liquidity shocks — stood at $109.8 billion as of end-December, up 4.8% from $104.8-billion level as of end-November and 25% higher than the $87.839 billion a year earlier.

“This buffer is equivalent to 11.7 months’ worth of imports of goods and payments of services and primary income, the Bangko Sentral ng Pilipinas (BSP) said in a statement on Friday.

“It is also about 9.6 times the country’s short-term external debt based on original maturity and 5.5 times based on residual maturity,” it added.

The BSP said the increase was supported by inflows from the central bank’s foreign exchange operation, revaluation gains from its gold holdings, and proceeds from the national government’s global bonds.

These gains were partially offset by foreign currency debt payments by the national government.

“The BSP has more than enough GIR to weather most short term spikes in demand for foreign currency in the future with reserves hitting yet another historical high and accounting for a good number of months worth of imports,” ING Bank-NV Manila Senior Economist Nicholas Antonio T. Mapa said in an email.

Broken down, gold reserves stood at $11.605 billion as of end-November, climbing 45% against its $8.015-billion level a year ago.

Gains from investment abroad stood at $93.428 billion, making up the bulk of the reserves. It rose 24% from last year’s $75.304 billion.

Buffers in the form of reserves in the International Monetary Fund (IMF) increased 37.7% to $812.9 million from $590.4 million.

Special drawing rights – or the money the Philippines can tap from the IMF – went up 3.6% to $1.224 billion from $1.182 billion in the year prior.

Meanwhile, foreign currency deposits decreased 0.8% to $2.726 billion from $2.747 billion.

BSP Governor Benjamin E. Diokno has said they expect to continue beefing up the dollar reserves with the crisis yet to be resolved.

During the BusinessWorld One on One online interview on Wednesday, Mr. Diokno that GIR could possibly reach “$110 billion this year and even $120 billion by next year”.

“The BSP will continue to be opportunistic in investing to maximize value to the bank, choosing between gold, dollars and Treasuries [securities] when market conditions warrant it,” ING Bank-NV Manila’s Mr. Mapa said. — Luz Wendy T. Noble

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

Latest

News

Manila and nearby cities will remain under a general lockdown next month amid a coronavirus pandemic, according to the presidential palace. President Rodrigo R....

News

PHILSTAR President Rodrigo R. Duterte on Friday night signed a measure creating a levy trust fund for coconut farmers, according to the presidential palace....

News

By Kyle Aristophere T. Atienza President Rodrigo R. Duterte on Friday signed a proclamation declaring fewer nonworking days this year supposedly to...

News

An inter-agency task force has approved a plan to inoculate FIlipino health workers against the coronavirus using vaccines from Chinese drugmaker Sinovac BIotech Ltd.,...

News

Philippine President Rodrigo R. Duterte on Friday night signed a measure that will fast-track coronavirus vaccine orders. “We are confident that the signing of...

News

The Philippine military is targeting to vaccinate 100 soldiers against the coronavirus daily once the first batch of vaccines from China’s Sinovac Biotech Ltd....

You May Also Like

When people envision technology overtaking society, many think of The Terminator and bulletproof robots. Or Big Brother in George Orwell’s Nineteen Eighty-Four, a symbol...

Financial Advisors

Stock Markets9 hours ago (Jul 02, 2020 04:45AM ET) (C) Reuters. ROME (Reuters) – World food prices rose in June to post their first...

Economy

SAN FRANCISCO — The spread of the coronavirus has meant feast or famine for technology start-ups. While many are cutting staff and slashing costs...

Economy

In Wisconsin and Ohio, farmers are dumping thousands of gallons of fresh milk into lagoons and manure pits. An Idaho farmer has dug huge...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 Respect Investment. All Rights Reserved.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!