Philippines' Foreign Exchange Buffer Hits Five-Month High on Gold Price Surge

The Philippine central bank's foreign exchange buffer rose to its highest level in five months as higher global gold prices lifted the Bangko Sentral ng Pilipinas' (BSP) gold holdings. Preliminary data from the BSP showed gross international reserves (GIR) climbed by 1.4% to $104.81 billion as of end-August from $103.32 billion in July.

The increase in GIR was driven mainly by valuation gains in the BSP's gold holdings amid higher global gold prices, as well as income from the BSP's investments abroad, according to UnionBank chief economist Ruben Carlo Asuncion.

Gold holdings rose by 9.3% to $19.11 billion in August from $17.49 billion a month prior. From a year earlier, gold reserves jumped by 31.6% from $14.52 billion.