Revaluation of gold holdings causes forex reserves decline to lowest level in 2 years

Bangko Sentral ng Pilipinas (Central Bank of the Philippines). Wikipedia photo

MANILA – Revaluation adjustments on the country’s gold holdings caused the gross international reserves to decrease at the lowest level in more than two years in October.

A data obtained from the Bangko Sentral ng Pilipinas indicated that GIR was only $79.296 billion in October.

GIR is an indicator of the country’s ability to pay for the imports of goods and services and its foreign debts.

The figure, which was the lowest since June 2012, showed a decrease from the $79.557 in September.

“The decrease in reserves was due mainly to revaluation adjustments in the BSP’s gold holdings and payments for maturing foreign exchange obligations of the National Government,” the BSP said.

The figures, however, were offset in partial by net foreign currency deposits of the National Treasury, earnings from the central bank’s investments abroad, and revaluation adjustments on the BSP’s foreign currency-denominated reserves.