END-NOVEMBER 2020 GIR LEVEL RISES TO US$104.51 BILLION
The country’s gross international reserves (GIR) level, based on preliminary data, rose by US$0.71 billion to US$104.51 billion as of end-November 2020 from the end-October 2020 level of US$103.80 billion. The latest GIR level represents an adequate external liquidity buffer, which can help cushion the domestic economy against external shocks. This buffer is equivalent to 11.2 months’ worth of imports of goods and payments of services and primary income. Moreover, it is also about 9.3 times the country’s short-term external debt based on original maturity and 5.3 times based on residual maturity.
The month-on-month increase in the GIR level reflected inflows mainly from the BSP’s foreign exchange operations and income from its investments abroad. These inflows were partly offset, however, by the foreign currency withdrawals the National Government made to pay its foreign currency debt obligations and revaluation losses from the BSP’s gold holdings resulting from the decrease in the price of gold in the international market.
Similarly, the net international reserves (NIR), which refers to the difference between the BSP’s GIR and total short-term liabilities, increased by US$0.7 billion to US$104.49 billion as of end-November 2020 from the end-October 2020 level of US$103.79 billion.
 By convention, GIR is viewed to be adequate if it can finance at least three-months’ worth of the country’s imports of goods and payments of services and primary income.
 Short-term debt based on residual maturity refers to outstanding external debt with original maturity of one year or less, plus principal payments on medium- and long-term loans of the public and private sectors falling due within the next 12 months.
 The level of GIR, as of a particular period, is considered adequate, if it provides at least 100 percent cover for the payment of the country’s foreign liabilities, public and private, falling due within the immediate twelve-month period.