BSP dollar reserves lowest in 7 years
The buffers are dwindling.
Gross international reserves maintained by the Bangko Sentral ng Pilipinas (BSP) went down to $74.77 billion as of October 2018, the lowest since July 2011.
In a statement, BSP Governor Nestor Espenilla, Jr. said it was due to outflows from foreign debt paid by the national government, net foreign currency withdrawals, as well as the central bank’s foreign exchange operations.
Defending the peso, which hovered at the P54 level versus the dollar, incurred costs charged to the reserves.
Meanwhile, higher valuations for BSP’s gold holdings helped offset these declines, together with BSP’s income from its investments abroad.
Import cover steadied at 6.8 months, same with September’s ratio.