The figure also breached the previous record-high level of $100.44 billion in September and the Bangko Sentral’s official $100-billion adjusted forecast for this year. The improved reserves level represents a more-than-adequate external liquidity buffer, which can cushion the local economy from external shocks. It can also cover 9.3 times the country’s short-term external debt based on original maturity and 5.4 times based on residual maturity. Net international reserves, which refer to the difference between GIR and total short-term liabilities, also increased to $100.8 billion in the 10th month from $100.43 billion a month earlier. To take advantage of rising gold prices, the central bank chief also said monetary authorities had decided to actively trade some of the country’s gold reserves.|Twelve percent of the country’s GIR are in gold, he added.

Source: Manila Times November 13, 2020 17:03 UTC