MANILA, Philippines - The country’s foreign exchange buffer narrowed to $81.41 billion in June but remains enough to cover close to nine months worth of imports, the Bangko Sentral ng Pilipinas (BSP) said. The GIR is the sum of all foreign exchange flowing into the country. The reserves serve as buffer to ensure the Philippines would not run out of foreign exchange it can use to pay for imported goods and services, or maturing obligations in case of external shocks. If it deems necessary, the BSP buys dollars from the foreign exchange market to prevent sharp depreciation of the peso. Espenilla said net foreign currency deposits by the national government as well as income from the BSP’s investments abroad cushioned the decline in the country’s foreign exchange buffer.

Source: Philippine Star July 08, 2017 16:18 UTC