MANILA – Gross international reserves (GIR) fell to $78.984 billion in November, the lowest since June 2012 when reserves were at $76.130 billion, according to the Bangko Sentral ng Pilipinas (BSP).
November’s GIR, which indicates the country’s ability to pay for imports of goods and services and to service foreign debt, was also down from the revised $79.409 billion recorded in October.
“The decrease in reserves was due mainly to the net foreign exchange operations of the BSP, payments for maturing foreign exchange obligations of the national government, and revaluation adjustments in the BSP’s gold holdings and foreign currency-denominated reserves,” the central bank said.
The BSP expects end-2014 foreign reserves to reach $85.3 billion, revised from an earlier forecast of $88 billion. Foreign reserves at end-2013 stood at $83.2 billion.
The central bank expects cash remittances from Filipinos overseas to rise 5 percent this year after a 6.4 percent growth in 2013 when they hit a record $22.97 billion.
Data released on Nov. 27 showed the Philippine economy slowed to its weakest pace in more than five years in the third quarter, hurt by a decline in public spending and farm output and signaling a longer-than-expected pause in the central bank's tightening cycle. -- With Reuters