MANILA - Philippine foreign exchange reserves fell to $80.615 billion in October, the lowest level in nearly 2 years, according to preliminary data from the Bangko Sentral ng Pilipinas.
The BSP attributed the decline in reserves to "outflows" arising from its foreign exchange operations and to payments by the government of its obligations.
"At this level, the GIR could adequately cover 8.4 months’ worth of imports of goods and payments of services and primary income. It is also equivalent to 5.4 times the country’s short-term external debt based on original maturity and 3.6 times based on residual maturity," the central bank said in a statement.
Last June, the central bank said reserves were expected to be at $80.5 billion by the end of the year, below its earlier estimate of $84.7 billion.
Surging imports are forecast to bring the country's current account balance this year to a $600 million deficit. --with a report from Reuters