PH forex reserves edge higher in August
MANILA, Philippines - Philippine foreign reserves went up to $83.2 billion in August from $83.17 billion in July, according the Bangko Sentral ng Pilipinas.
The gross international reserves (GIR) can cover 12 months worth of imports, and is equal to 5.5 times s-term foreign debt, residual maturity.
The level of reserves climbed in August due to inflows from the foreign exchange operations of the central bank, revaluation gains from its gold holdings and net foreign currency deposits from the national government, the BSP said in a statement.
The central bank expects record GIR of $87 billion this year, up slightly from a previous forecast of $86 billion.
The country gets an average of more than $1.7 billion in remittances from overseas Filipinos each month, helping to support the peso, balance of payments and foreign reserves.
The local currency has declined nearly 8 percent against the dollar this year, and is the fifth worst performing Asian currency in 2013, according to Thomson Reuters data. It surged nearly 7 percent in 2012, driven by strong inflows and remittances from Filipinos overseas.
Despite recent policy action by India and Indonesia to defend their beleaguered currencies, the Bangko Sentral ng Pilipinas (BSP) is unlikely to raise interest rates at a meeting next week even in the face of a sharp decline in its peso currency.
Authorities have ample room to maneuver policy with the Philippines in a sweet spot of low inflation and strong growth. Unlike some if its neighbors in the region, it is also enjoying a current account surplus.