State deposits, higher gold price lift Philippines' dollar reserves

Foreign reserves are assets held mostly as investments in foreign-issued securities, gold as well as foreign currencies like dollar and euro. Being the lender of last resort, the BSP manages reserves as a stand-by fund to help the economy stay afloat in times of external shocks.

STAR / File

MANILA, Philippines — The Philippines’ dollar reserves expanded in October due to higher foreign currency deposits from the national government and higher value of gold held by the central bank.

What’s new

Gross international reserves amounted to $107.95 billion as of October, up 1.3% month-on-month, the Bangko Sentral ng Pilipinas reported on Friday. 

Why this matters

Foreign reserves are built mostly of investments in gold and foreign that could protect the Philippine economy from external shocks. The BSP’s role as a lender of last resort is to manage these buffers. 

Full Story: https://www.philstar.com/business/2021/11/12/2140831/state-deposits-higher-gold-price-lift-philippines-dollar-reserves