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MANILA – The Bangko Sentral ng Pilipinas (BSP) said on Thursday that the country’s gross international reserves could reach more than $ 100 billion this year as the price of gold continues to rise.
The Philippines’ GIR already reached a record $ 98.6 billion in July this year, the BSP previously reported. But since the central bank has gold as part of its reserves, the GIR may grow even higher as the price of the precious metal continues to rise.
BSP Governor Benjamin Diokno noted that the price of gold rose 24.7 percent last year and has already risen another 18.3 percent this year.
The BSP buys gold from small miners in the Philippines, as well as other sources, to use as foreign exchange reserves.
“The historical high level of the GIR can be essentially attributed to the efficient management of reserves by the central bank and the sustained net inflow of foreign exchange as a result of surpluses in external transactions,” Diokno said.
The National Government’s foreign currency deposits in the BSP from its loans to finance financing requirements, including the response to COVID-19, also contributed to the increase in reserves.
– Report by Warren De Guzman, ABS-CBN News
Bangko Sentral, BSP, Benjamin Diokno, gold, precious metals, forex, gross international reserves, GIR, Philippine economy
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