A two-year low of $80.313 billion in was reached by Philippines’ dollar reserves in November. The slide, according to Inquirer is due to a weaker peso and a lower gold price. The amount was shown in the preliminary Banko Sentral ng Pilipinas data that was released on Thursday.
Last month, the gross international reserves (GIR) level was constantly at its lowest since it scraped at $80.173 billion.
Though the pesos remained at $1 to P51 for November.
BSP Deputy Governor Chuchi G. Fonacier said in a statement that the further decline in the GIR that was reported at $80.419 in October can be attributed to the “outflows arising from payments made by the national government for its maturing foreign exchange obligations as well as revaluation adjustments on the gold holdings of the BSP resulting from the decrease in the price of gold in the international market.”
Fonacier also added that the drop was a partial offset by the net foreign currency.
The GIR was nonetheless “partially offset by the net foreign currency deposits of the national government and income from the BSP’s investments abroad,”
The GIR that was accounted by the end of November was able to cover 8.4 months’ of imports of goods and also of payments of primary income and services.
Also, it was added that even if the dollar reserve was low, it is still equivalent to 5.4 times of the short-term external debt of the country on original maturity and about 3.7 times if on residual maturity.
According to BSP, the short-term debts are those that are based on residual maturity or outstanding foreign debts whose original maturity was months or up to one year.
BSP also mentioned that the international reserves or the difference between the short-term liabilities and the GIR also slid down to $80.2 billion in November as opposed to $80.4 billion in October.
It is also foreseen that the GIR will still decline by the end of 2017.