The International Monetary Fund’s Special Drawing Rights (SDR) allocation to the Philippines of $2.77 billion has helped bolster the country’s forex buffers to $108.046 billion at the end of August.
Data from the Bangko Sentral ng Pilipinas showed that forex reserves increased by 9.18 percent or $9.092 billion from $98.954 billion.
As of end-August, the SDR component of the gross international reserves (GIR) amounted to $3.996 billion from $1.223 billion end-July.
IMF member countries can tap into their SDR allocation to boost foreign exchange reserves, reduce reliance on debt and support their economy when needed. The SDR is a reserve asset that can be traded between countries in exchange for cash or liquidity.
According to the BSP, the current GIR is “more than adequate external liquidity buffer” which is 12.3 months’ worth of imports of goods and payments of services and primary income. It is about 7.8 times the country’s short-term external debt on original maturity and 5.4 times on residual maturity.
BSP-managed foreign investments as part of the GIR declined to $90.679 billion end-August versus the previous month’s $92.652 billion.
Gold reserves, on the other hand, slightly went up to $9.155 billion.