Dollar reserves recover in August following 4-month slip

The central bank saw its dollar stash slightly grow in August.

The central bank saw its dollar stash slightly grow in August.

Gross international reserves maintained by the Bangko Sentral ng Pilipinas (BSP) took a small reprieve last month after it amounted to $77.83 billion, higher than the $76.72 billion level seen at end-July.

What’s more important is that it clipped a four-month streak of dwindling reserves, which came as the BSP used the money to defend the peso as it traded weaker against the US dollar.

“This was higher than the US$76.72 billion level recorded in July 2018 due mainly to inflows arising from the National Government’s (NG) net foreign currency deposits as well as the BSP’s income from its investments abroad,” the BSP said in a statement.

The amount grew despite lower gold values, reflecting modest valuations in the international market.

The reserves are enough to cover 7.5 months’ worth of imports, or 6.2 times the Philippines’ short-term foreign debt. It’s safe to mark as a source of calm amid tumultuous times.

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