MANILA - The Bangko Sentral ng Pilipinas (BSP) said Thursday that the country’s gross international reserves could hit more than $100 billion this year as the price of gold continues to rise.
The Philippines’ GIR already hit a record $98.6 billion as of July this year, the BSP earlier reported. But with the central bank holding gold as part of its reserves, the GIR may grow further as the price of the precious metal keeps rising.
BSP Governor Benjamin Diokno noted that the price of gold rose 24.7 percent last year, and has already climbed another 18.3 percent this year.
The BSP buys gold from the Philippines’ small scale miners as well as from other sources to use as foreign exchange reserves.
“The GIR’s historic high level can be attributed essentially to effective reserves management by the central bank and the sustained net inflow of foreign exchange resulting from surpluses in external transactions,” Diokno said.
The National Government’s foreign currency deposits with the BSP from its borrowings to finance funding requirements, including for COVID-19 response, also contributed to the rise in reserves.
-- Report from Warren De Guzman, ABS-CBN News