THE central bank said its gold sales took advantage of favorable prices and were consistent with its strategy for managing its reserves.
In a statement late Tuesday, the Bangko Sentral ng Pilipinas (BSP) said the first-half sales are “part of its active management strategy of the country’s gold reserves, which form part of the country’s gross international reserves (GIR).”
The central bank said it “took advantage of the higher prices of gold in the market and generated additional income without compromising the primary objectives for holding gold, which are insurance and safety.”
BSP Governor Eli M. Remolona, Jr. told reporters separately that the bank was pursuing a defined investment strategy.
Mr. Remolona also noted that the proportion of gold to the GIR is around 9%.
The BSP reported that GIR stood at $107.9 billion at the end of August. The BSP said that its dollar reserves have remained “robust” even with the gold sales.
Reserves in the form of gold were valued at $10.22 billion at the end of August, the BSP reported.
“The GIR level provides adequate external liquidity buffer and is equivalent to 7.8 months’ worth of imports of goods and payments of services and primary income,” the BSP said.
“It also represents about 6.0 times the country’s short-term external debt based on original maturity and 3.8 times based on residual maturity.”
The central bank reported that at the end of 2023, the bulk of the Philippines’ reserves was held in foreign investments (84.7%), followed by gold (10.2%).
Last year, gold purchases rose 26% to 298,203.4 troy ounces.
Meanwhile, good delivery bar (GDB) production increased 11.4% last year.
The BSP produced 737 GDBs, with an average gold assay of 99.6%. — Luisa Maria Jacinta C. Jocson