Forex reserves to hit record high of $83B by year-end — BSP

December 4, 2012 8:54pm

The Philippines’ foreign exchange reserves are set to reach a new high of $83 billion by the end of 2012, the central bank governor said Tuesday.

“[The new gross international reserves forecasts are] $83 billion for this year and $86 billion for next year,” Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr. told reporters at the sidelines of a forum on financial education held at the central bank’s headquarters in Manila.

The country’s GIR is currently already at a record high of $82 billion, 6.6 times the country's total foreign currency-denominated debts and enough to cover nearly a year's worth of the Philippines' import requirements, the BSP earlier reported.

Strong inflows of remittances, foreign portfolio investments, and foreign investments in the business process outsourcing sector have been credited for the rise in foreign currency reserves.

Last month, Moody’s Investors Service upgraded the Philippines' credit rating to just one notch below investment grade. The BSP has claimed that the Philippines' rising GIR is one of the reasons for improving investor confidence in the country, as it is an indication of the country's ability to meet its foreign currency-denominated obligations. — BM, GMA News