Forex reserves hit lowest in nearly 2 yrs

MANILA – Philippine foreign exchange reserves fell to $80.615
billion in October, the lowest level in nearly 2 years,
according to preliminary data from the Bangko Sentral ng
Pilipinas. 

The BSP attributed the decline in reserves to “outflows”
arising from its foreign exchange operations and to payments by
the government of its obligations.

“At this level, the GIR could adequately cover 8.4 months’
worth of imports of goods and payments of services and primary
income. It is also equivalent to 5.4 times the country’s
short-term external debt based on original maturity and 3.6
times based on residual maturity,” the central bank said in a
statement.

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Last June, the central bank said reserves were expected to be
at $80.5 billion by the end of the year, below its earlier
estimate of $84.7 billion.

Surging imports are forecast to bring the country’s current
account balance this year to a $600 million deficit.
–with a report from Reuters

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