Strong earnings from the Bangko Sentral ng Pilipinas (BSP) investments overseas and gains from foreign exchange operations kept the country’s gross international reserves above $75 billion and over 11 months of import cover for three consecutive months now.
The October level of $75.814 billion gave the country 11.16 months of import cover and foreign debt buffer of 6.4 times residual maturity, the Bangko Sentral reported Friday.
BSP earnings from investments abroad jumped 35.5 percent to $65.918 billion in October compared to the $48.64 billion a year ago.
End-October earnings from foreign exchange operations stood at $398.86 million after surging 34.5 percent from $296.43 million
The Aquino administration’s economic planners are aiming for investment grade rating for its international debt by early next year and the international reserves position is one of the key factors that could achieve that goal.
High reserve levels and the consequently higher import cover and foreign debt buffer are indicators of a national economy’s liquidity and capacity to absorb external shocks especially during times of financial crises. — ELR/VS
