The higher reserves were largely due to the central banks net foreign exchange operations worth $3.46 billion, $77 million worth of net deposits made by the government in foreign currency, and the revaluation gains on BSPs gold holdings worth $49 million.
The end-October 2020 GIR level represents more than adequate external liquidity buffer, BSP said in a statement.
while merchandise imports were still down by 16.5% to $7.92 billion.he said.Forex reserves hit all-time high in end-OctoberExports rose by 2.2% to $6.22 billion in September,the GIR could still post new record highs,the first expansion in seven months,Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message .For the coming months,The trade deficit narrowed to $1.71 billion that month from $3.41 billion a year ago.The GIR could also post new record highs in view of more proceeds of foreign borrowings by the government especially for various COVID-19 programs and by the private sector that entail foreign investors in the coming months amid near record low interest rates,he added.The reserve level at the end of September was already higher than the central banks $100-billion projection for the full year.It said the current stock was equivalent to 10.3 months of imports of goods and payments of services and primary income. It could also cover 9.3 times the countrys short-term foreign debt based on original maturity,boosted by the central banks foreign exchange operations.Mr. Ricafort said the expected increase in remittances from migrant Filipino workers in time for the Christmas season could further push reserve levels to a new record.The higher reserve level reflects the narrowing trade deficit data as the growth in exports outpace imports,and 5.4 times based on residual maturity.Philippine dollar reserves rose to a fresh record of $103.814 at the end of October,partly on relatively narrower trade deficits/net imports from year-ago levels by about $1 billion to $2 billion per month,
The gross international reserves rose by 3.35% from a month earlier, based on documents sent by Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno to reporters on Friday.
The most common outlook was one of caution. They are mindful that much of the rebound in markets and private-company valuations is thanks to ultra-low interest rates, massive central bank stimulus, and government fiscal support, some of which could start to be wound back in coming months. Photo by Mackenzie Marco on Unsplash
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