PH forex reserves hit fresh high in August

Posted at 09/07/2012 4:54 PM | Updated as of 09/07/2012 4:58 PM

MANILA, Philippines - The Philippines' gross foreign reserves hit a fresh high of $80.78 billion as of end-August.

The foreign reserves can cover 11.89 months worth of imports. 

The increase in the reserves level was due mainly to the central bank's foreign exchange operations, its income from overseas investments, the government's foreign currency deposits, and gains on revaluation of the central bank's gold holdings, the Bangko Sentral ng Pilipinas said in a statement.   

Governor Amando Tetangco has said the central bank will review its yearend forecast for foreign reserves, with the current levels already surpassing the forecast of $77.5 billion to $78 billion at the end of 2012.   

The Philippine peso is Asia's best performing currency so far this year. As of Friday morning, it had strengthened nearly 5 percent against the dollar in 2012.  

The central bank expects the balance of payments surplus to narrow to $2.8 billion, or 1.1 percent of gross domestic product, this year, from $10.18 billion in 2011. 

The country gets an average of more than $1.6 billion in remittances from overseas Filipinos each month, helping to support the peso, balance of payments and foreign reserves.