Forex reserves hit record $33.7B
Doris Dumlao
Philippine Daily Inquirer
The Philippines’ foreign exchange reserves ended 2007 at a record-high $33.7 billion, up 46 percent from $22.97 billion a year earlier, on strong inflows of cash remittances from overseas Filipinos and foreign investments, the central bank said Monday.
The gross international reserves overshot the government’s revised 2007 target of $33.5 billion, said Governor Amando Tetangco Jr. of the central bank, Bangko Sentral ng Pilipinas (BSP).
The GIR surged by about $1 billion in December from an end-November level of $32.72 billion, given the season of robust foreign exchange remittances from overseas Filipinos.
“The significant accumulation of reserves in December was attributed mainly to inflows from the BSP’s net foreign exchange operations and income from its investments abroad, as well as the national government’s deposit of proceeds of a program loan from the Asian Development Bank,” Tetangco said.
He said the inflows were partly offset by payments of maturing obligations by the national government and the BSP.
“At this level, reserves could cover 5.9 months’ worth of imports of goods and payments of services and income,” Tetangco said.
The BSP’s net international reserves — the difference between the GIR and total short-term liabilities — went up to $33.7 billion from an end-November level of $32.7 billion. They included the revaluation of reserve assets and reserve-related liabilities.
Strong foreign exchange inflows in 2007, which jacked up the peso by nearly 19 percent to become Asia’s best performing currency, allowed the BSP to buy more dollars from the spot foreign exchange market.
The GIR buildup last year was even tempered by the BSP’s intensified use of currency swaps, a major tool used by the BSP to mop up excess foreign exchange purchased on the currency spot market.
Edited by INQUIRER.net
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